NYSE Margin Debt Rises To New All Time High As Net Worth Slides To Record Low Submitted by Tyler Durden on 05/28/2013 18:28 -0400 New York Stock Exchange With everything else in uncharted territory: central bank balance sheets, the stock market, global debt, it was only a matter of time before that old-school indicator of exuberance - margin debt - also joined the ranks of things that are "off the charts." Never one to disappoint (except when Waddell and Reed dumps a "massive" 75,000 ES trade which promptly kills its liquidity replenishment points of course), the NYSE has reported that April margin debt, as expected, hit all time records, just in time for the SP's own all time high fireworks spectacular. Rising from the just shy of summer of 2007 levels posted in March, or $380 billion, April margin debt not surprisingly rose to a record high of $384 billion. Additionally, even when netting out account credit metrics, such as Free Credit Cash and Credit Balances in margin accounts, total investor net worth just hit an all time record low of ($106) billion. In short: investors have never been more levered. And that is only looking at legacy metrics. Recall that as per recent regulations requiring that hedge funds expose gross leverage via Form PF , just the top 50 or so HFs have gross exposure of over $1.3 trillion, which means they are levered massively more than their LP realize, and than the naive NYSE margin statistic indicates. But that is a topic for a different day. For now let's just bask in the simplicity of the good old days, where NYSE margin was relevant, and not get too scared by what the true margin level in the market may actually be, especially when one takes into account the leverage on the Fed's own balance sheet. Average: 4.333335 Your rating: None Average: 4.3 ( 6 votes) Tweet - advertisements - Login or register to post comments 7466 reads Printer-friendly version Send to friend Similar Articles You Might Enjoy: Levered Beta Uber Alles: NYSE Borse Margin Debt Jumps To Three Year Highs, Investor Net Worth Remains At Record Lows NYSE Margin Debt Rises To Fresh Five Year High As Short Interest Slide Continues The Real "Margin" Threat: $600 Trillion In OTC Derivatives, A Multi-Trillion Variation Margin Call, And A Collateral Scramble That Could Send US Treasurys To All Time Records... NYSE October Margin Debt Jumps To Highest Since Lehman Failure As Investor Net Worth Is At Lowest Since April Highs NYSE November Margin Debt Rises To Fresh Post-Lehman High
Junk Debt Drops Below 5% Yield For First Time On Record Submitted by Tyler Durden on 05/08/2013 15:24 -0400 Barclays Bond CDO Collateralized Debt Obligations High Yield While most comprehend that when buying credit-risky instruments the most critical aspect of return is the spread (or additional compensation over the risk-free rate) which itself is in 'bubble' territory; it is nevertheless spell-binding that the so-called 'High Yield' corporate bond market is now trading with a yield below 5% for the first time on record - a level at which 10 Year Treasuries were trading in July 2007... Barclays high yield index 'yield' is now below 5% - the same as US Treasuries in July 2007! and the bubble in credit risk re-emerges with the Fed as provider of excess liquidity as opposed to CDO creation last time... Charts: Bloomberg Average: 4.833335 Your rating: None Average: 4.8 ( 6 votes) Tweet - advertisements - Login or register to post comments 8664 reads Printer-friendly version Send to friend Similar Articles You Might Enjoy: The First-Loss Insurance Providing EFSF Is A Truly Unique Vehicle Financial Lexicon 101: Summary Of Key Terms Portuguese 10 Year Bond Yield Hit Fresh Lifetime Highs The LBO Refi Wave Approaches: $800 Billion In Junk Debt Maturing By 2014, Adds To Multi Trillion Fixed Income Refi Cliff Whither Prop Trading? Thoughts From Whitney And Bernstein
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