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Margin debt in the United States climbed $86.5 billion in June to reach a record $1.5 trillion, with the ratio of margin debt to U.S. M2 money supply simultaneously printing an all-time high of 6.5%.
Both records arrived in the same month. Together they establish the current setup: equity investors are carrying the most borrowed exposure on record in both absolute dollars and as a share of the money supply.
The print The $86.5 billion monthly increase pushed outstanding margin debt above any prior reading. The M2 ratio is the more instructive figure.
Absolute margin levels tend to expand alongside market capitalization during prolonged rallies, so a dollar record in isolation can be explained partly by a larger market.
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