Gross debits in portfolio margin accounts have grown to more than 40 percent of overall margin debt in the 11 months since they became available, bringing assets back onshore and adding another concern for credit analysts.
According to the Financial Industry Regulatory Authority (Finra), a survey of the 12 broker-dealers approved to offer the accounts shows that as of Feb. 29 they were responsible for $144.2 billion of the $334.9 billion in total U.S. margin debt, a 25 percent increase from the end of January. Though the debits stood at $58 billion in July, they dipped to $45 billion in August, a volatile month that prompted investors to rein in leverage--overall margin debt was at $331.4 billion in August, down from $381 billion the month prior.
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