Data: Leverage ratio in the U.S. investment market surges, margin debt to M2 ratio exceeds levels seen during the 2000 internet bubble.

BlockBeats News, on December 21, KobeissiLetter released data showing that in November, U.S. trading margin debt surged by $30 billion, reaching a record high of $1.21 trillion, marking the seventh consecutive month of increase. Over the past seven months, U.S. margin debt has soared by $364 billion, an increase of 43%. After adjusting for inflation, margin debt rose 2% month-on-month and 32% year-on-year, reaching an all-time high. Meanwhile, the ratio of margin debt to the M2 money supply jumped to about 5.5%, the highest level since 2007. The margin debt-to-M2 ratio is now higher than during the internet bubble of 2000, indicating that leverage in the U.S. investment market has reached an extremely high level.

Trading margin debt refers to the total amount of debt investors incur when borrowing money from brokers to purchase stocks or other securities in securities trading. This allows investors to amplify their investment scale with less of their own capital, thereby increasing potential returns, but also magnifying risks.