Global securities finance revenues rise 13% YoY for November
06 December 2022 US
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Global securities finance revenues have increased 13 per cent year-on-year (YoY) to US$1.005 billion for November, according to S&P Global Market Intelligence.
Although fees increased 19 per cent YoY and utilisation grew 9 per cent YoY, the value of on-loan balances declined 6 per cent relative to November 2021. The decrease comes as no surprise, the firm says, given the fall in market valuations over 2022.
Revenues for exchange-trade products (ETPs) increased 15 per cent YoY to US$60 million. However, month-on-month growth declined by 14 per cent, falling across both Europe (-4 per cent) and the Americas (-26 per cent).
Fixed income lending performed well throughout November 2022. Lending revenues for government bonds continued to produce stronger revenues YoY, with an increase of 20 per cent to US$161 million.
According to S&P Global Market Intelligence, corporate bonds revenues were the highest for any month so far during 2022, increasing 7 per cent month-on-month to US$91.5 million.
The firm says “having grown every month since the start of the year, 2022 is likely to be the best year for corporate bond revenues ever recorded”.
Average fees for ETPs increased 17 per cent YoY to 77bps and for corporate bonds, average fees climbed 73 per cent to 44bps.
Average fees for government bonds remained at a year high of 18bps, following the exact same figures as the two-month previous. However, average fees for this asset class showed an increase of 39 per cent YoY.
For American Depositary Receipts (ADR), average fees for November were 101bps, a 38 per cent YoY increase. Despite this growth year-on-year, fees have fallen month-on-month since their peak in August 2022 at 168bps.
ADRs generated US$23 million in securities finance revenues during the month of November, a 6 per cent decrease from November 2021.
Revenue from EMEA equities rose 27 per cent YoY to US$135 million in November, the third-highest monthly revenue figure recorded during 2022.
Americas equities revenues also increased YoY climbing 11 per cent to US$351 million. Asia equities saw a 13 per cent YoY decline, however, to US$164 million.
Although fees increased 19 per cent YoY and utilisation grew 9 per cent YoY, the value of on-loan balances declined 6 per cent relative to November 2021. The decrease comes as no surprise, the firm says, given the fall in market valuations over 2022.
Revenues for exchange-trade products (ETPs) increased 15 per cent YoY to US$60 million. However, month-on-month growth declined by 14 per cent, falling across both Europe (-4 per cent) and the Americas (-26 per cent).
Fixed income lending performed well throughout November 2022. Lending revenues for government bonds continued to produce stronger revenues YoY, with an increase of 20 per cent to US$161 million.
According to S&P Global Market Intelligence, corporate bonds revenues were the highest for any month so far during 2022, increasing 7 per cent month-on-month to US$91.5 million.
The firm says “having grown every month since the start of the year, 2022 is likely to be the best year for corporate bond revenues ever recorded”.
Average fees for ETPs increased 17 per cent YoY to 77bps and for corporate bonds, average fees climbed 73 per cent to 44bps.
Average fees for government bonds remained at a year high of 18bps, following the exact same figures as the two-month previous. However, average fees for this asset class showed an increase of 39 per cent YoY.
For American Depositary Receipts (ADR), average fees for November were 101bps, a 38 per cent YoY increase. Despite this growth year-on-year, fees have fallen month-on-month since their peak in August 2022 at 168bps.
ADRs generated US$23 million in securities finance revenues during the month of November, a 6 per cent decrease from November 2021.
Revenue from EMEA equities rose 27 per cent YoY to US$135 million in November, the third-highest monthly revenue figure recorded during 2022.
Americas equities revenues also increased YoY climbing 11 per cent to US$351 million. Asia equities saw a 13 per cent YoY decline, however, to US$164 million.
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