Dimon warns of hidden leverage fueling potential market disruption

Jamie Dimon warned that overall market leverage remains elevated, with margin debt at record levels and significant hidden leverage through prime brokers, hedge funds, ETFs and arbitrage strategies. He cautioned that such leverage could amplify rapid moves and trigger market disruptions, though not labeling it systemic, as markets have absorbed isolated failures; banks are likely to demand more collateral during volatility, and ongoing capital demand could push long-term rates higher amid deficits and rearmament.