Stock Market Leverage is at Dangerous Levels

Stock Market Leverage is at Dangerous Levels.  As the chart below from Advisor Perspective’s Jill MIslinski shows investor negative credit balances in margin accounts these days dwarf the negative balances that preceded  big market declines of  the last ten years.  Why should we worry about that?  Stock drops precipitate margin calls from brokers.  These drops…

Increasing Risk in Leveraged Loan Market is Worrisome for Economy: Remember 2007

Increasing Risk in Leveraged Loan Market is Worrisome for Economy: Remember 2007.  Jon Harris of Alternative Investment Management, LLC has done a great job explaining the increasing danger in the leveraged loan market. This is evident as once again the bond rating agencies, despite the economic havoc they caused in 2007, are playing loosey goosey…