Gavekal Capital: NYSE Margin Debt Charged To New All-Time Highs In March

Thursday, April 30, 2015

NYSE Margin Debt Charged To New All-Time Highs In March

After spending the past year somewhat ranged bound, margin debt increased by just under $11.5 billion in March to a new all-time high of $476 billion, taking out the previous high set in February 2014. The increase in margin debt over the past two months is the largest two-month increase since February 2013. Net margin debt (Debit balances minus credit balances) also increased to a new all-time high in March. However, the one-quarter moving average of margin debt as a % of total market capitalization remains 18 basis points below all-time highs.

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Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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