Net Credit Balances Hit Record -$1.06 Trillion in June
Net credit balances dropped $70 billion in June to a record -$1.06 trillion, as margin debt swelled to an all-time high of $1.50 trillion, signaling unprecedented investor risk appetite.
Net credit balances fell by $70 billion in June, sinking to a record low of -$1.06 trillion. This metric tracks the amount of cash in brokerage accounts relative to margin debt.
Since the 2022 bear market, the net credit balance has more than quadrupled in negative territory. Over the same period, margin debt has surged by $895 billion to reach a record $1.50 trillion.
By contrast, throughout the 2008 Financial Crisis, the net credit balance remained positive—investors held more cash than margin debt as they deleveraged and fled to safety. Currently, investor risk appetite is at unprecedented levels.
Source: The Kobeissi Letter