Securities lending revenues decline 20% YoY for April
03 May 2024 US
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Securities lending revenues declined by 20 per cent year-on-year (YoY) to US$1.03 billion for April, according to S&P Global Market Intelligence data.
There was a 26 per cent decline YoY in American equities to US$389 million, while EMEA equities fell 36 per cent to US$138 million.
Asia remained the stand out region among the equity market, generating US$175 million over the month, though declining 4 per cent YoY.
A similar pattern could be seen across the fixed income markets with revenues declining three per cent YoY across government bonds to US$151 million, and falling 25 per cent across corporate bonds to US$75 million. Average fees declined YoY across the board.
Commenting on the figures, Matt Chessum, director of securities finance at S&P Global Market Intelligence, says: “On first glance these revenue numbers may not look very good but it is important to remember the context that we are seeing these in.”
He explains that 2023 was an exceptional year for securities lending revenues and that any comparison to last year will therefore look somewhat unfavourable.
Continuing on, he adds: “When compared to any other year other than 2023, these revenue numbers look pretty robust and show that the market activity remains in good shape.”
There was a 26 per cent decline YoY in American equities to US$389 million, while EMEA equities fell 36 per cent to US$138 million.
Asia remained the stand out region among the equity market, generating US$175 million over the month, though declining 4 per cent YoY.
A similar pattern could be seen across the fixed income markets with revenues declining three per cent YoY across government bonds to US$151 million, and falling 25 per cent across corporate bonds to US$75 million. Average fees declined YoY across the board.
Commenting on the figures, Matt Chessum, director of securities finance at S&P Global Market Intelligence, says: “On first glance these revenue numbers may not look very good but it is important to remember the context that we are seeing these in.”
He explains that 2023 was an exceptional year for securities lending revenues and that any comparison to last year will therefore look somewhat unfavourable.
Continuing on, he adds: “When compared to any other year other than 2023, these revenue numbers look pretty robust and show that the market activity remains in good shape.”
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