FINRA Margin Debt Jumps 54% to Record $1.4 Trillion, Raising Correction Risk
Updated
Updated · fundstratdirect.com · Jun 29
FINRA Margin Debt Jumps 54% to Record $1.4 Trillion, Raising Correction Risk
2 articles · Updated · fundstratdirect.com · Jun 29
Summary
$1.4 trillion in margin debt marked a record high in the latest FINRA data, with borrowing up 54% from a year earlier.
That year-over-year surge ranks as the fifth-largest in 70 years, according to Fundstrat's Tom Lee, a pace that has typically increased the odds of a market correction.
The jump points to investors taking on more leverage as they pile into risk assets, leaving markets more vulnerable if prices reverse.