Global securities lending revenue up 1% YoY for July, reports DataLend
02 August 2023 US
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The global securities finance industry generated US$943 million in revenue for lenders in July 2023, a 1 per cent year-on-year increase from July 2022, according to market data provider DataLend.
Month-on-month, this represents a 6 per cent increase on the revenue generated for lenders in June 2023.
Global broker-to-broker transactions totalled US$234 million, representing a fall of 11 per cent YoY.
Lender-to-broker revenue saw an increase of 24 per cent, which DataLend says has been largely driven by improving conditions in the APAC equity market. Year-on-year, balances increased by 17 per cent and fees increased by 6 per cent.
In the US equities market revenues fell by 10 per cent YoY but rose 24 per cent MoM.
The top five earners in the securities lending market in July 2023 were AMC Entertainment Holdings (AMC), Sirius XM Holdings (SIRI), Nikola Corporation (NKLA), Beyond Meat Inc. (BYND) and C3.AI Inc. (AI). The five securities in total generated US$183 million in revenue for the month.
Lending revenue delivered by top earner AMC jumped 193 per cent MoM to US$84 million, representing 8.9 per cent of all lending revenue in July.
Corporate debt continued to perform well, with revenues increasing 34 per cent YoY. In the North American corporate space, the largest contributor to this increase, investment-grade bonds revenue rose 74 per cent YoY while high-yield issuances climbed 34 per cent.
Month-on-month, this represents a 6 per cent increase on the revenue generated for lenders in June 2023.
Global broker-to-broker transactions totalled US$234 million, representing a fall of 11 per cent YoY.
Lender-to-broker revenue saw an increase of 24 per cent, which DataLend says has been largely driven by improving conditions in the APAC equity market. Year-on-year, balances increased by 17 per cent and fees increased by 6 per cent.
In the US equities market revenues fell by 10 per cent YoY but rose 24 per cent MoM.
The top five earners in the securities lending market in July 2023 were AMC Entertainment Holdings (AMC), Sirius XM Holdings (SIRI), Nikola Corporation (NKLA), Beyond Meat Inc. (BYND) and C3.AI Inc. (AI). The five securities in total generated US$183 million in revenue for the month.
Lending revenue delivered by top earner AMC jumped 193 per cent MoM to US$84 million, representing 8.9 per cent of all lending revenue in July.
Corporate debt continued to perform well, with revenues increasing 34 per cent YoY. In the North American corporate space, the largest contributor to this increase, investment-grade bonds revenue rose 74 per cent YoY while high-yield issuances climbed 34 per cent.
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