US Margin Debt Hits Record $1.42 Trillion in May
US margin debt rose by $112 billion in May to a record $1.42 trillion, marking the second consecutive monthly increase and a 54% surge over the past year. Real (inflation-adjusted) margin debt has grown 550% since 1997, far outpacing the S&P 500's real gain of 357.7%.
US stock market leverage reached an all-time high in May as margin debt — money borrowed by investors to buy securities — jumped by $112 billion to $1.42 trillion, according to data cited by The Kobeissi Letter.
This marks the second straight monthly increase, bringing the total gain over that period to $195 billion. Over the past 12 months, margin debt has surged by $495 billion, or 54%.
Adjusted for inflation, real margin debt rose 7.9% month-over-month and 47.4% year-over-year. Since 1997, real margin debt has expanded 550%, significantly outpacing the S&P 500's real total return of 357.7% over the same timeframe. The data underscores the historically elevated level of leverage in the market.
Source: The Kobeissi Letter