Background: The COVID-19 was a determining factor in the disruption of supply chains in the automotive industry, exacerbating material shortages. This led to increased supplier order cancelations, longer lead times, and reduced safety inventory levels. Methods: This study analyzes and models...

In this article, we show how to analyze the covariation of bond prices nonparametrically and robustly, staying consistent with a general no‐arbitrage setting. This is, in particular, motivated by the problem of identifying the number of statistically relevant factors in the bond market under...