Global securities lending revenues rise 32% YoY, says DataLend
04 April 2022 Global
Image: AdobeStock/Monster Ztudio
The global securities lending industry generated US$2.17 billion in revenue for lenders during Q1 2022, a 5 per cent YoY increase, according to DataLend.
Revenue from fixed income lending provided the backbone for this year-on-year increase, rising 27 per cent to US$534 million. Revenue from corporate debt was particularly strong, with average on-loan balances growing by 33 per cent and average fee rising by 59 per cent compared with Q1 2021.
In contrast, revenue from equities securities contracted YoY, falling 1 per cent to US$2.07 billion.
For the month of March, the global securities lending industry generated US$836 million in revenue for lenders, a 32 per cent increase compared with March 2021.
Lender-to-broker revenue rose year-on-year, powered by North American equities where demand in IPOs, SPACs and high-yield corporate debt ETFs pushed the average fee up to 61 bps YoY, a 30 per cent rise on March 2022.
Global broker-to-broker revenue, representing lending and borrowing between broker-dealers, climbed 1 per cent YoY for the month of March to US$251 million.
The top five revenue generating securities during March 2022 were Lucid Group (LCID), Dutch Bros (BROS), Digital World Acquisition (DWAC), iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Rivian Automotive (RIVN). These five securities collectively generated more than US$58 million in revenue during March.
Revenue from fixed income lending provided the backbone for this year-on-year increase, rising 27 per cent to US$534 million. Revenue from corporate debt was particularly strong, with average on-loan balances growing by 33 per cent and average fee rising by 59 per cent compared with Q1 2021.
In contrast, revenue from equities securities contracted YoY, falling 1 per cent to US$2.07 billion.
For the month of March, the global securities lending industry generated US$836 million in revenue for lenders, a 32 per cent increase compared with March 2021.
Lender-to-broker revenue rose year-on-year, powered by North American equities where demand in IPOs, SPACs and high-yield corporate debt ETFs pushed the average fee up to 61 bps YoY, a 30 per cent rise on March 2022.
Global broker-to-broker revenue, representing lending and borrowing between broker-dealers, climbed 1 per cent YoY for the month of March to US$251 million.
The top five revenue generating securities during March 2022 were Lucid Group (LCID), Dutch Bros (BROS), Digital World Acquisition (DWAC), iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Rivian Automotive (RIVN). These five securities collectively generated more than US$58 million in revenue during March.
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