Global securities lending revenue up 6.6% YoY for 2022, says DataLend
04 January 2023 US
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The global securities finance industry generated US$9.89 billion in revenue for lenders in 2022, a 6.6 per cent increase from 2021, according to DataLend.
This figure represents an almost 30 per cent increase from the revenue generated in 2020.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$2.73 billion in revenue for 2022, a 3.1 per cent decrease from the previous year.
The market data service of EquiLend indicates that an improvement in lender-to-broker revenue over 2021 was primarily driven by the strong performance of corporate debt in the lending markets, which saw a US$317 million increase in total revenue.
Corporate debt fees were up 67.9 per cent, and when combined with an 8.6 per cent increase in on-loan balances, made for a “banner year” in the asset class, says DataLend.
Rounding out the fixed income sector, government debt revenue increased 9.8 per cent YoY as higher fees offset a drop in on-loan balances.
In the equity lending market, North American securities outperformed other regions with an 11 per cent increase in fees, helping to generate an additional US$295 million in revenue compared to 2021.
While revenue for APAC and EMEA declined 6.5 per cent and 2 per cent, respectively, due to lower fees.
The top five earners in 2022 were Lucid Group (LCID), GameStop Corporation (GME), Beyond Meat Inc. (BYND), Sirius XM Holdings (SIRI) and Cassava Sciences Inc. (SAVA).
The securities in total generated US$769 million for lenders over the course of 2022, an increase from the US$413 million generated by 2021’s top five earners.
This figure represents an almost 30 per cent increase from the revenue generated in 2020.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$2.73 billion in revenue for 2022, a 3.1 per cent decrease from the previous year.
The market data service of EquiLend indicates that an improvement in lender-to-broker revenue over 2021 was primarily driven by the strong performance of corporate debt in the lending markets, which saw a US$317 million increase in total revenue.
Corporate debt fees were up 67.9 per cent, and when combined with an 8.6 per cent increase in on-loan balances, made for a “banner year” in the asset class, says DataLend.
Rounding out the fixed income sector, government debt revenue increased 9.8 per cent YoY as higher fees offset a drop in on-loan balances.
In the equity lending market, North American securities outperformed other regions with an 11 per cent increase in fees, helping to generate an additional US$295 million in revenue compared to 2021.
While revenue for APAC and EMEA declined 6.5 per cent and 2 per cent, respectively, due to lower fees.
The top five earners in 2022 were Lucid Group (LCID), GameStop Corporation (GME), Beyond Meat Inc. (BYND), Sirius XM Holdings (SIRI) and Cassava Sciences Inc. (SAVA).
The securities in total generated US$769 million for lenders over the course of 2022, an increase from the US$413 million generated by 2021’s top five earners.
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