Jamie Dimon, CEO of JPMorgan Chase, told CNBC on Wednesday that margin debt has reached an all-time high in market history. He identified four sources of leverage: prime brokers, hedge funds, leveraged ETFs, and Treasury arbitrage trades. Dimon warns that much of this borrowing hides under different names on separate balance sheets, making the true scale of leverage hard to measure. The Federal Reserve has started reviewing private credit markets, which could reveal stress points in that sector. Stock and bond valuations remain near historical highs, increasing the market’s vulnerability to a sudden shock rather than a gradual pullback.
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