cash balances

Leverage Channels

By Jeffrey P. Snider|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 [...]

Margin Debt Matches Small Caps

By Jeffrey P. Snider|2014-05-06T11:14:03-04:00May 6th, 2014|Markets, Stocks|

We still may not know the difference between cause and effect, but margin debt balances dropped in March for the first time in ten months. The $14 billion decline in margin debt was also coincident to an increase of $6 billion in relative cash balances in equity accounts at FINRA dealers. That meant total investor net worth “improved” by a [...]

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