JPMorgan's Jamie Dimon says margin debt hit record, warns on leverage

JPMorgan Chief Executive Officer Jamie Dimon said margin debt has reached a record and warned that leverage remains elevated across financial markets, including through prime brokerages, hedge funds, exchange-traded funds and Treasury arbitrage strategies. He said much of that borrowing is not captured in official margin-debt figures, making hidden leverage harder to track and increasing the chance that a single investor or fund could trigger a sudden bout of volatility, even if that does not necessarily amount to a systemic threat like the mortgage-driven losses seen in 2008. Dimon said banks and clearing houses would likely demand more collateral if volatility rises, and warned that government deficits, infrastructure spending and global military buildup could keep inflationary pressure and long-term interest rates elevated. His comments come as investors weigh high stock valuations, record hedge-fund leverage and large Treasury basis trades. He pointed to the collapse of AI-focused hedge fund Situational Awareness, for which JPMorgan was one of the main brokers, as evidence that a leveraged failure can unwind quickly while still being absorbed by the broader market. Commentary around that collapse from Ross Gerber and Martin Shkreli also centered on leverage and margin-call dynamics in crowded AI trades.