Lendable inventory tops US$40tn
28 August 2024 US
Image: Lemonsoup14/stokc.adobe.com
Lendable inventory has topped the US$40 trillion benchmark for the first time in history, according to data from S&P Global Market Intelligence.
The firm says a combination of growth in asset valuations, new inventory from an expanding range of client types, and a raft of innovation has been the driver behind the increase.
Lendable inventories reached a peak of US$40.13 trillion on 27 August, US$1.3 trillion of which came from new participants over the past 24 months, according to the data — highlighting the continued importance of securities lending for both market liquidity, and additional returns for pension and investment funds.
Commenting on the news, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: “Securities lending inventory reaching the US$40 trillion milestone underscores the growing significance of securities finance markets in today's financial ecosystem.
“As the demand for liquidity and efficient capital allocation continues to rise, securities lending plays a crucial role in supporting market stability and driving global financial innovation.
“This milestone reflects not just the scale of these markets, but their increasing importance in providing the tools for investors to manage risk and optimise returns. This growth is not just tied to an increase in market valuations, it is also a reflection of an expanding range of asset owners who are choosing to enter the market.”
The firm says a combination of growth in asset valuations, new inventory from an expanding range of client types, and a raft of innovation has been the driver behind the increase.
Lendable inventories reached a peak of US$40.13 trillion on 27 August, US$1.3 trillion of which came from new participants over the past 24 months, according to the data — highlighting the continued importance of securities lending for both market liquidity, and additional returns for pension and investment funds.
Commenting on the news, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: “Securities lending inventory reaching the US$40 trillion milestone underscores the growing significance of securities finance markets in today's financial ecosystem.
“As the demand for liquidity and efficient capital allocation continues to rise, securities lending plays a crucial role in supporting market stability and driving global financial innovation.
“This milestone reflects not just the scale of these markets, but their increasing importance in providing the tools for investors to manage risk and optimise returns. This growth is not just tied to an increase in market valuations, it is also a reflection of an expanding range of asset owners who are choosing to enter the market.”
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