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Chart of the Week: NYSE Member Firms’ Client Margin
Posted By Barry Ritholtz On April 19, 2005 @ 12:23 pm In Markets,Trading | Comments Disabled
e last addressed Margin debt back in September 2003 .
At that time, we noted that margin was only modest, and represented little
danger to the market. As the chart below shows, Margin has scaled up
significantly. At present, while Margin debt is 20% below its 2000 peak, it’s
the highest it has been since early ‘01.
Source: NYSE 
It is at the greatest spread relative to the Nasdaq since
the last time we last addressed the issue. Margin debt holds the additional
risk of “forced selling” into any further weakness. As we saw post-2000, the
daily liquidations exacerbated the downward movement as the markets collapsed.
Quote of the Day:
"I have no special talents. I am only passionately curious."
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/04/chart-of-the-week-nyse-member-firms%e2%80%99-client-margin/
URLs in this post:
 September 2003: http://bigpicture.typepad.com/comments/2003/09/nasd_firm_margi.html
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/margin_march_05.jpg
 NYSE: http://www.nyse.com/pdfs/margin0205.pdf
 Here It Comes: The Sarbanes-Oxley Backlash: http://www.nytimes.com/2005/04/17/business/yourmoney/17sox.html?ex=1271390400&en=526bbbd625461134&ei=5090&partner=rssuserland&emc=rss
 The Cruelest Month?: http://online.barrons.com/article/SB111360851591808543.html?mod=b_this_weeks_magazine_main
 How to Pick the Tech Winners: http://www.businessweek.com/bwdaily/dnflash/apr2005/nf2005047_6796.htm
 Higher Oil Prices Can’t Do the Work of the Fed: http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_baum&sid=agwo_SRsapps
 The Long Emergency: http://www.rollingstone.com/news/story/_/id/7203633?pageid=rs.NewsArchive&pageregion=mainRegion&rnd=1111689845570&has-player=true&version=184.108.40.206
 Genius loves company : http://www.thedeal.com/NASApp/cs/ContentServer?pagename=TheDeal/TDDArticle/StandardArticle&c=TDDArticle&cid=1112030891267&r=InFs&p=M4YD5AR2
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