Jamie Dimon: "There is a high chance that someone will shake the market and people will panic"

JPMorgan CEO Jamie Dimon warned during an interview with NBC that leverage across financial markets remains high, and that investors should take into account that hidden credit volume could amplify market shocks. "Margin debt is at its highest level ever," he stated.

He pointed to borrowing through prime brokerage services, hedge funds, exchange-traded funds (ETFs), and arbitrage strategies in government bonds. "Leverage in the market is quite high." His remarks come against the backdrop of a re-examination of leverage in financial markets, as peak pricing in stocks, near-unprecedented leverage in hedge funds, and large-scale basis trades in government bonds raise concerns about vulnerabilities accumulating in parts of the financial system. Dimon noted that heavy leverage increases the risk that an individual investor or a single fund will trigger wider volatility:

"When you have a situation like that, there is a higher chance that someone will shake the market quickly, and people will panic because of it."

Dimon emphasized that banks will continue to adjust collateral requirements in response to changes in market conditions. "When volatility rises, clearing houses and banks usually ask for more collateral," he said. "Therefore, it is likely that you will see some of that."

In addition, he presented a warning that structural demand for capital could reignite inflationary pressures, pointing to government deficits, infrastructure investment, and global rearmament as forces supporting higher interest rates in the long term.

"The rearmament of the world will be inflationary," he said, recalling his statement that these dynamics "could be the spoiler," if they lead investors to demand higher compensation for holding long-term bonds.