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M5 · THE BUILD-UP OF SYSTEM LEVERAGE FROTH MISSES

NFCI leverage subindex

0.42
CALM ROBUST z 0.42 DRS 95 weekly as of 2026-05-29

Where it sits: higher than ~78% of its full record.

The full history

1971 high 3.84 · low -2.00 · now 0.42 · 7 recessions shaded 2026

How it is read

What it measures
the build-up of system leverage froth misses
Where it sits
higher than ~78% of its full record — at the 78th percentile of its full record.
z vs. its window
0.42 (strain side: up). 2,891 observations in the window.
State rule
z < 1 CALM · 1 ≤ z < 2 WATCH · z ≥ 2 EXTREME, measured only toward the declared strain side.
Confidence
ROBUST — a primary official series, mechanically reported.
Reliability (DRS)
DRS 95 — The Chicago Fed's leverage component: how much borrowed money stands under asset prices. The altitude tiles read the climb; this reads what is propping it.

Where it comes from

FRED ↗ Every number on this site is reproducible from this primary source.

What it read at past stress points

Lehman, Sep 2008 2.46 ▲ EXTREME
Q4-2018 selloff 0.28 · CALM
Curve inversion, Aug 2019 0.06 · CALM
COVID crash, Mar 2020 0.89 · CALM

Questions it helps answer

  • The Ledge — How high is the market — and what is under it?