US Investor Leverage Hits Record as Net Credit Balance Plunges to -$992 Billion
US investors are more leveraged than ever, with net credit balance falling to a record -$992 billion in May 2026, increasing the risk of forced selling.
US investors have reached a new level of leverage, as the net credit balance—cash holdings minus margin debt—dropped to an all-time low of -$992 billion in May 2026.
This record deficit indicates a heavy reliance on borrowed funds to finance stock purchases. Such elevated leverage amplifies the potential for market volatility, as any shift in sentiment could trigger forced selling of positions.
The data highlights growing systemic risk in equity markets, with margin debt levels now far exceeding available cash balances.
Source: First Squawk