🚨 JAPAN'S RETAIL MARGIN DEBT JUST HIT A 32-YEAR HIGH.
Outstanding margin buying on the Tokyo Stock Exchange hit ¥6.6 trillion this month, pushing the margin ratio to nearly 8, roughly double its historic average.$SNDK
A BOJ rate hike would make this far worse.
Higher rates raise margin funding costs and strengthen the yen, both of which force leveraged retail positions to unwind fast.$RIF
If a hawkish BOJ, record retail leverage, and a stretched 33% rally all hit at once, even a small drawdown could trigger margin calls across thousands of leveraged positions at the same time, turning a normal pullback into forced selling.$M
Outstanding margin buying on the Tokyo Stock Exchange hit ¥6.6 trillion this month, pushing the margin ratio to nearly 8, roughly double its historic average.$SNDK
A BOJ rate hike would make this far worse.
Higher rates raise margin funding costs and strengthen the yen, both of which force leveraged retail positions to unwind fast.$RIF
If a hawkish BOJ, record retail leverage, and a stretched 33% rally all hit at once, even a small drawdown could trigger margin calls across thousands of leveraged positions at the same time, turning a normal pullback into forced selling.$M