Securities lending revenue up 8% YoY for November
03 December 2024 Global
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Securities lending revenues reached US$953 million in November, marking an 8 per cent increase compared to the previous year, S&P Global Market Intelligence has reported.
Equity markets remained stable year-over-year (YoY) during the month, with Americas equities rising 1 per cent to US$333 million, EMEA equities falling 3 per cent to US$65 million, and Asian equity revenues increasing 2 per cent to US$172 million.
According to the multi-asset class and real-time data provider, the growth in market revenues was primarily driven by ETFs, which saw a rise of 53 per cent YoY, and government bonds, which grew by 26 per cent.
Corporate bond revenues also showed strong performance, increasing by 9 per cent YoY to US$87 million.
Matt Chessum, director of securities finance at S&P Global Market Intelligence, comments: “As anticipated, with the US election taking place at the beginning of the month, ETFs thrived as thematic trades related to the incoming administration unfolded.
“Government bonds remained a bright spot amid rising uncertainty about future interest rate movements, while corporate bonds are poised for a standout year following another month of strong revenues.”
He explains that although revenues for 2024 began lower YoY, they have shown a strong recovery in the final quarter.
Year-to-date, securities lending activities have generated a total of US$10.76 billion in 2024.
Chessum adds: “After two exceptionally strong years of market revenues, the outcome for 2024 hinges on the last month of the year, determining whether it will rank as the third or fourth highest revenue-generating year since our records began.”
Equity markets remained stable year-over-year (YoY) during the month, with Americas equities rising 1 per cent to US$333 million, EMEA equities falling 3 per cent to US$65 million, and Asian equity revenues increasing 2 per cent to US$172 million.
According to the multi-asset class and real-time data provider, the growth in market revenues was primarily driven by ETFs, which saw a rise of 53 per cent YoY, and government bonds, which grew by 26 per cent.
Corporate bond revenues also showed strong performance, increasing by 9 per cent YoY to US$87 million.
Matt Chessum, director of securities finance at S&P Global Market Intelligence, comments: “As anticipated, with the US election taking place at the beginning of the month, ETFs thrived as thematic trades related to the incoming administration unfolded.
“Government bonds remained a bright spot amid rising uncertainty about future interest rate movements, while corporate bonds are poised for a standout year following another month of strong revenues.”
He explains that although revenues for 2024 began lower YoY, they have shown a strong recovery in the final quarter.
Year-to-date, securities lending activities have generated a total of US$10.76 billion in 2024.
Chessum adds: “After two exceptionally strong years of market revenues, the outcome for 2024 hinges on the last month of the year, determining whether it will rank as the third or fourth highest revenue-generating year since our records began.”
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