Investor Leverage Hits a Record as Margin Debt Surges 🚨

Net credit balances fell by $70 billion in June to a record -$1.06 trillion , meaning investors now hold far more margin debt than available cash in their brokerage accounts.
Since the 2022 bear market, the deficit has more than quadrupled as margin debt surged by $895 billion to a record $1.50 trillion .
For comparison, net credit balances remained positive throughout the 2008 Financial Crisis as investors reduced leverage and moved toward cash.
Today’s market is showing the opposite behaviour: investor risk appetite and reliance on borrowed money are at historic extremes.