Japan's looking bright, finds Markit Securities Finance
28 February 2014 London
Image: Shutterstock
Japanese securities lending is looking bright, according to Markit Securities Finance analyst Simon Colvin.
Generally flat loan balances have not stopped Japan from seeing a steady rise in specials and their associated fees over the last two years, its data has revealed.
“Dividends are also forecast to rise, further boosting the prospects for the securities lending industry.”
Highlights for Japan include its aggregate loan balance holding steady at $40 billion for the last three years, although utilisation is at an eight-year low.
Specials now account for almost 8 percent of the market and command higher fees, while dividend payments in the main Nikkei 225 index are forecasted to rise by 14 percent.
Generally flat loan balances have not stopped Japan from seeing a steady rise in specials and their associated fees over the last two years, its data has revealed.
“Dividends are also forecast to rise, further boosting the prospects for the securities lending industry.”
Highlights for Japan include its aggregate loan balance holding steady at $40 billion for the last three years, although utilisation is at an eight-year low.
Specials now account for almost 8 percent of the market and command higher fees, while dividend payments in the main Nikkei 225 index are forecasted to rise by 14 percent.
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