Securities lending revenues down 4% YoY for Q3 2024
02 October 2024 Global
Image: buraratn/stock.adobe.com
Securities lending activity generated US$964 million in revenues in September, representing an 8 per cent year-on-year (YoY) increase, according to S&P Global Market Intelligence.
In its snapshot for September revenues, the firm says: “Balances continued to rise as equity markets continued to reach new highs spurred by stimulus in China, dovish moves in interest rates, and strong earnings from US technology companies.”
Average fees across all securities declined 4 per cent YoY to 41bps, and lendable continued to “hover close to all time highs”, the firm reports.
Across the equity markets, Americas equities revenues grew 19 per cent YoY to US$328 million while Asian equities fell 12 per cent YoY to US$198 million.
EMEA equity revenues grew 1 per cent YoY to US$62 milllion — the first month of YoY positive growth of 2024.
In the fixed income markets, government bond revenues grew 28 per cent YoY to US$198 million as speculation in the future move of interest rates continued to boost demand, the firm says.
Balances continued to grow across all corporate bonds, increasing 29 per cent YoY.
Entering the final quarter of the year, S&P Global Market Intelligence also reflects on Q3 2024.
Securities lending revenues reached US$3 billion in the third quarter of the year, representing a 4 per cent reduction compared with Q3 2023.
All regional equity markets experienced declines during the period, with Americas revenues falling 9 per cent, Asian equities declining 8 per cent, and EMEA equities down by 12 per cent.
Government bonds and American depositary receipts (ADRs) were the stand out asset classes during Q3, with revenues up 15 per cent to US$535 million and 21 per cent to US$71 million respectively.
ETFs also fared well as thematic trading strategies boosted demand, the firm says, growing balances by 7 per cent and revenues by 6 per cent to US$159 million.
Commenting on the snapshot, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: “Financial markets experienced more volatility during Q3 than during Q1 and Q2 combined.
“While securities lending markets were unable to capture the full upside of these moves in terms of higher revenues, heading into Q4, with the US presidential elections now only five weeks away, growing uncertainty and tensions in the Middle East, stimulus measures sending asset valuations higher in China, and dovish tones from central bankers, securities lending is well placed to perform well in the coming months.”
In its snapshot for September revenues, the firm says: “Balances continued to rise as equity markets continued to reach new highs spurred by stimulus in China, dovish moves in interest rates, and strong earnings from US technology companies.”
Average fees across all securities declined 4 per cent YoY to 41bps, and lendable continued to “hover close to all time highs”, the firm reports.
Across the equity markets, Americas equities revenues grew 19 per cent YoY to US$328 million while Asian equities fell 12 per cent YoY to US$198 million.
EMEA equity revenues grew 1 per cent YoY to US$62 milllion — the first month of YoY positive growth of 2024.
In the fixed income markets, government bond revenues grew 28 per cent YoY to US$198 million as speculation in the future move of interest rates continued to boost demand, the firm says.
Balances continued to grow across all corporate bonds, increasing 29 per cent YoY.
Entering the final quarter of the year, S&P Global Market Intelligence also reflects on Q3 2024.
Securities lending revenues reached US$3 billion in the third quarter of the year, representing a 4 per cent reduction compared with Q3 2023.
All regional equity markets experienced declines during the period, with Americas revenues falling 9 per cent, Asian equities declining 8 per cent, and EMEA equities down by 12 per cent.
Government bonds and American depositary receipts (ADRs) were the stand out asset classes during Q3, with revenues up 15 per cent to US$535 million and 21 per cent to US$71 million respectively.
ETFs also fared well as thematic trading strategies boosted demand, the firm says, growing balances by 7 per cent and revenues by 6 per cent to US$159 million.
Commenting on the snapshot, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: “Financial markets experienced more volatility during Q3 than during Q1 and Q2 combined.
“While securities lending markets were unable to capture the full upside of these moves in terms of higher revenues, heading into Q4, with the US presidential elections now only five weeks away, growing uncertainty and tensions in the Middle East, stimulus measures sending asset valuations higher in China, and dovish tones from central bankers, securities lending is well placed to perform well in the coming months.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
