DataLend: Global securities lending revenue up 9% YoY for October
06 November 2024 US
Image: Taras_Vykhopen/stock.adobe.com
Global securities finance revenue for lenders increased 9 per cent year-on-year (YoY) for October, generating US$818 million, says DataLend.
The market data service of EquiLend also reports that global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — was down 7 per cent YoY for the month, totalling an additional US$202 million in revenue.
In its monthly review, DataLend says equity revenue increased globally by 3 per cent due to a 6 per cent increase in global balances relative to 2023.
Equity revenue in EMEA grew by 2 per cent, as a 13 per cent increase in balances offset a 9 per cent decline in fees YoY. In APAC, equity revenue was “roughly flat”, according to the firm.
Global revenue generated by government bonds increased 39 per cent YoY, largely due to a 22 per cent increase in balances, DataLend says.
With the US presidential election on the horizon, lending revenue for US-issued sovereign debt jumped 59 per cent, as both fees and balances climbed relative to 2023.
Corporate debt lending saw moderate annual gains, with revenue increasing 2 per cent globally. Although fees for corporate bonds fell 20 per cent YoY, revenue still grew due to a 24 per cent jump in balances.
The top five earning securities in October were the US Treasury bond 4.125%, Tempus AI, Cassava Sciences, iShares iBoxx $ Inv Grade Corporate Bond ETF, and Spirit Airlines.
The five securities in total generated US$54 million in revenue for the month.
The market data service of EquiLend also reports that global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — was down 7 per cent YoY for the month, totalling an additional US$202 million in revenue.
In its monthly review, DataLend says equity revenue increased globally by 3 per cent due to a 6 per cent increase in global balances relative to 2023.
Equity revenue in EMEA grew by 2 per cent, as a 13 per cent increase in balances offset a 9 per cent decline in fees YoY. In APAC, equity revenue was “roughly flat”, according to the firm.
Global revenue generated by government bonds increased 39 per cent YoY, largely due to a 22 per cent increase in balances, DataLend says.
With the US presidential election on the horizon, lending revenue for US-issued sovereign debt jumped 59 per cent, as both fees and balances climbed relative to 2023.
Corporate debt lending saw moderate annual gains, with revenue increasing 2 per cent globally. Although fees for corporate bonds fell 20 per cent YoY, revenue still grew due to a 24 per cent jump in balances.
The top five earning securities in October were the US Treasury bond 4.125%, Tempus AI, Cassava Sciences, iShares iBoxx $ Inv Grade Corporate Bond ETF, and Spirit Airlines.
The five securities in total generated US$54 million in revenue for the month.
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
