MORGAN CHASE CEO DAMON WARNS THAT MARKET LEVERAGE IS “VERY HIGH” AND THAT PEOPLE ALWAYS DISRUPT THE MARKET

On 6 August, Jamie Dimon, Chief Executive Officer of Chase Morgan, warned that the current level of leverage in financial markets remained high, and that large amounts of borrowing, hidden outside traditional statistics, could become a source of risk for high market volatility. In an interview with CNBC journalist Leslie Picker, Damon said: “The debt of the financing voucher is at an all-time high”. He pointed out that there was still a large amount of borrowing in the market that did not take the form of “financing bond debt” but that it existed through other channels. “This leverage, some hidden and others public.” Damon indicates that the financing activities carried out through the main broker, hedge funds, exchange-trade funds (ETF) and the arbitrage strategy of national debt are all sources of market leverage. In his view, the current “market leverage rate is quite high”. Damon ' s warning was at a time when the market was giving renewed attention to the potential vulnerability of the financial system. At present, the United States stock market valuation is at a high level, with hedge fund leverage close to historical record, while large-scale sovereign debt-banking transactions raise market concerns and investors begin to assess whether some financial areas are accumulating risks. According to Damon, a highly leveraged environment means that when an investor or fund is in trouble, it may be easier to trigger a chain reaction. “When such a situation exists, there is a real higher probability that someone will disrupt the market in a quick manner, and people will be disturbed.” He said。