Securities lending revenue rises 51% YoY for August
01 September 2021 US
Image: Oleksii/stock.adobe.com
Global securities lending revenue has increased 51 per cent year on year (YoY) to US$796 million for August 2021, according to DataLend, the market data division of fintech EquiLend.
The latest figures reflect a 5 per cent increase from the US$756 million generated for lenders in July 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$211 million in revenue in August, a 19 per cent increase from 2020.
DataLend explains that the increase in lender-to-broker revenue over 2020 was driven by an increase in fees and balances in global equities.
This was with an exchange offer in Europe, the Middle East and Africa (EMEA) and several high-profile 2021 initial public offerings (IPO) and special-purpose acquisition company (SPAC) mergers still trading hot.
The average fee for global equities increased by over 20 basis points (bps) to 74 bps, while the average on-loan value increased by 16 per cent compared to the prior year.
For fixed-income securities, global revenue generated from government debt saw a 21 per cent increase, while corporate debt increased 44 per cent. Both increases in revenue were driven by rises in the average on-loan value of 21 per cent and 40 per cent respectively.
The top five earners in August 2021 were Naspers N (NPN SJ), Lucid group (LCID), Coupang (CPNG), Robinhood Markets (HOOD) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The five securities in total generated over US$148 million in revenue in the month.
The latest figures reflect a 5 per cent increase from the US$756 million generated for lenders in July 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$211 million in revenue in August, a 19 per cent increase from 2020.
DataLend explains that the increase in lender-to-broker revenue over 2020 was driven by an increase in fees and balances in global equities.
This was with an exchange offer in Europe, the Middle East and Africa (EMEA) and several high-profile 2021 initial public offerings (IPO) and special-purpose acquisition company (SPAC) mergers still trading hot.
The average fee for global equities increased by over 20 basis points (bps) to 74 bps, while the average on-loan value increased by 16 per cent compared to the prior year.
For fixed-income securities, global revenue generated from government debt saw a 21 per cent increase, while corporate debt increased 44 per cent. Both increases in revenue were driven by rises in the average on-loan value of 21 per cent and 40 per cent respectively.
The top five earners in August 2021 were Naspers N (NPN SJ), Lucid group (LCID), Coupang (CPNG), Robinhood Markets (HOOD) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The five securities in total generated over US$148 million in revenue in the month.
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