According to S&P Global Market Intelligence data, securities lending revenues declined by 13 per cent year-on-year (YoY) in May, to US$1,073 million.
The fall in YoY revenues was seen across all regions except for Asia, where revenues increased 55 per cent YoY. This was driven by a 55 per cent YoY increase in Taiwan, a 53 per cent rise in Malaysia, and an 85 per cent increase in Singapore.
Government and corporate bond revenues are down by 8 per cent and 22 per cent YoY respectively, though the data shows balances held strong, growing by 11 per cent and 14 per cent.
Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: “Revenues remain robust across the market despite the YoY declines. Asia experienced an incredible month with some impressive growth seen across multiple markets.
“Heading into June, as election results start to roll in and interest rate divergence is about to take place, these revenues set the market up well for a successful H1 as more volatility and opportunities are expected in the coming months.”
