The $86.5 billion monthly increase marked a third straight rise, highlighting heavier use of borrowed money by traders as risk appetite builds.
US margin debt reached a record $1.5 trillion in June, rising by $86.5 billion from the previous month and climbing 49% over the past year. The increase marked a third consecutive monthly advance, signaling that traders are taking on more leverage (borrowed funds used to amplify bets). Record margin balances are often watched as a gauge of investor risk appetite because borrowed money can magnify gains in rising markets and deepen losses if prices reverse.