Margin debt hits pre-crisis levels.

 NYSE margin debt hit $379.5B in March, a 28% Y/Y increase as investors borrow money to buy into what has become a famously resilient rally. The concern is that a steep sell-off could snowball if leveraged investors are forced to unwind positions to meet margin calls. Borrowing to buy shares is of course one sign of unbridled optimism, although some believe levering up makes sense in the current environment. The last time margin debt hit $380B: July 2007, the same month S&P and Moody's marked the beginning of the crisis by downgrading hundreds of RMBS.