Leverage Channels

By |2014-06-10T11:44:33-04:00June 10th, 2014|Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

Following up on yesterday’s observations about valuations in stocks, margin debt declined in April for the second consecutive month. The absolute change across both March and April is not very large, amounting to $27 billion or 5%. Total cash balances were essentially unchanged, meaning that investors retired margined positions and reduced overall leverage in retail accounts. Since there was little [...]