Global securities lending revenue faces 16% YoY decline, reports DataLend
05 June 2024 US
Image: Tohamina
The global securities finance industry generated US$895 million in revenue for lenders in May 2024, according to DataLend.
The figure represents a 16 per cent decrease from the US$1.06 billion generated in May 2023.
Global broker-to-broker activity also declined 3 per cent YoY, totalling $247 million in revenue for the same month.
The firm says the decrease is due to the same underlying issues apparent in April, with global equity lending revenue declining due to slower US and EMEA markets.
US equity revenue fell 18 per cent YoY due to a 23 per cent dip in fees. In EMEA, equity revenues experienced a stark 38 per cent downturn as fees dropped 32 per cent year-over-year.
APAC equities, however, were a “bright spot” among other lagging revenue, DataLend suggest, with a 16 per cent revenue increase on the back of a 20 per cent improvement in fees.
A 61 per cent increase in balances led the boom in Taiwan, while an increase in fees in Japan (+43 per cent) and Hong Kong (+19 per cent) were drivers for revenue.
Global fixed income revenue declined 13 per cent year-over-year, with government debt performance largely flat and a 35 per cent drop in corporate debt revenue.
Corporate debt revenues declined across ratings buckets, with investment-grade performance down 22 per cent and high-yield revenues falling 10 per cent.
The top five earning securities in May were Lucid Group, Trump Media & Technology Group, Beyond Meat, ImmunityBio and EnbridgeNPV.
In total, the five securities generated US$75 million in revenue for the month.
The figure represents a 16 per cent decrease from the US$1.06 billion generated in May 2023.
Global broker-to-broker activity also declined 3 per cent YoY, totalling $247 million in revenue for the same month.
The firm says the decrease is due to the same underlying issues apparent in April, with global equity lending revenue declining due to slower US and EMEA markets.
US equity revenue fell 18 per cent YoY due to a 23 per cent dip in fees. In EMEA, equity revenues experienced a stark 38 per cent downturn as fees dropped 32 per cent year-over-year.
APAC equities, however, were a “bright spot” among other lagging revenue, DataLend suggest, with a 16 per cent revenue increase on the back of a 20 per cent improvement in fees.
A 61 per cent increase in balances led the boom in Taiwan, while an increase in fees in Japan (+43 per cent) and Hong Kong (+19 per cent) were drivers for revenue.
Global fixed income revenue declined 13 per cent year-over-year, with government debt performance largely flat and a 35 per cent drop in corporate debt revenue.
Corporate debt revenues declined across ratings buckets, with investment-grade performance down 22 per cent and high-yield revenues falling 10 per cent.
The top five earning securities in May were Lucid Group, Trump Media & Technology Group, Beyond Meat, ImmunityBio and EnbridgeNPV.
In total, the five securities generated US$75 million in revenue for the month.
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