Via Bloomberg; Margin Debt Ratio at NYSE Rises To Most Speculative Since 2003
2017-12-28 14:07:01.421 GMT
By Bloomberg Automation
(Bloomberg) — Net debt in New York Stock Exchange customer
margin accounts rose to 1.03 percent of companies’ market
capitalization in November, the most in data going back to 2003
and a signal that traders became more speculative.
* Net margin debt, or debits in the accounts minus cash,
increased to $286.9 billion in November from $269.7 billion in
the prior month.
* October’s total represented 0.99 percent of the companies’
* The margin ratio was 0.8 percent in November a year earlier.
* Leverage tends to rise and fall with the market’s value.
Margin borrowing exceeding cash indicates more speculation,
while cash greater than debt suggests greater investor caution.
The last time the accounts held more cash than debt was in
| November | October
Margin account debts|$580.9 B |$561.4 B
Cash account credits|$140.9 B |$140.0 B
Margin account | |
credits |$153.2 B |$151.7 B
Net margin debt |$286.9 B |$269.7 B
NYSE Market Cap |$27.8 T |$27.2 T
Net margin debt to | |
market cap ratio | 1.03%| 0.99%
The NYSE releases margin balances as of the end of the
month. Bloomberg’s market cap ratio is calculated as of that