Margin debt plunged in March, as markets tanked and investors pulled in their horns further still.

According to numbers released by the Investment Dealers Association today, outstanding debt in client margin accounts slipped under $10 billion for the first time since last in June to $9.7 billion at March 31. This is down sharply from February, when client debt sat at just under $10.4 billion, flat with January levels.

The March result was the lowest level for margin debt in the past 12 months. Back in May 2000, margin debt sat at $9.8 billion. The lower debt levels is undoubtedly the result of clients limiting their borrowing in the face of choppy equity markets, and the consequence of losses sustained over the past few months. Debt levels peaked at $11.3 billion in November 2000.