Ameriprise flags $1.5 trillion margin debt as leverage, stock concentration risks rise
AMP•Margin debt and leveraged ETF flows
FINRA customer margin debt hit USD 1.5 trillion in June, up 49% year over year; USD 494 billion added in 12 months.
Only three prior periods since 1997 saw sustained margin-debt growth above 40%; each preceded a 35%+ drawdown, equity correction.
Leveraged ETF assets peaked near USD 207 billion in late June; fell to about USD 168 billion by mid-July; daily rebalancing flows hit USD 50 billion.
Ameriprise flags rising systemic risk
Ameriprise flagged rising systemic risk from record market leverage colliding with record S&P 500 concentration.
S&P 500 concentration at record levels
Top 10 stocks exceed 37% of S&P 500 market cap; Information Technology near 38% of the index, a record sector weight.
