What Financing Data Reveal About Dealer Leverage

7 Pages Posted: 5 Apr 2005

See all articles by Tobias Adrian

Tobias Adrian

International Monetary Fund

Michael J. Fleming

Federal Reserve Bank of New York


The Federal Reserve collects data on the financing activities of the primary government securities dealers. Some market analysts argue that the data show a considerable rise in dealer leverage in recent years. However, a close reading of the data suggests that dealer borrowing involving fixed-income securities has grown only modestly. Moreover, the increase that has occurred is not clearly associated with greater risk taking.

Keywords: leverage, primary dealers, risk taking, volatility, treasury market

JEL Classification: G1, G2, E4

Suggested Citation

Adrian, Tobias and Fleming, Michael J., What Financing Data Reveal About Dealer Leverage. Available at SSRN: https://ssrn.com/abstract=699441

Tobias Adrian (Contact Author)

International Monetary Fund ( email )

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HOME PAGE: http://www.tobiasadrian.com

Michael J. Fleming

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States
212-720-6372 (Phone)
212-720-1582 (Fax)

HOME PAGE: http://www.newyorkfed.org/research/economists/fleming/

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