DataLend: Global securities lending revenue down 0.3% YoY for November
04 December 2024 US
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Global securities finance revenue for lenders decreased 0.3 per cent year-over-year (YoY) for November, generating US$779 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 3 per cent YoY for the month, totalling an additional US$208 million in revenue.
In its monthly review, DataLend says equity revenue declined globally by 6 per cent due to a 14 per cent YoY drop in fees.
With US equity indexes soaring after the presidential election, lending revenue for US stocks fell by 12 per cent, with average fees declining 25 per cent YoY.
Equity revenue in EMEA and APAC saw gains of 6 per cent and 2 per cent YoY respectively.
“The Taiwan and Hong Kong markets were bright spots,” says DataLend, “with the former capturing 30 per cent in annual gains and the latter climbing 26 per cent.”
Global government debt lending revenue increased 23 per cent YoY on the back of a 20 per cent YoY rise in balances and a 3 per cent YoY increase in fees.
US government debt remained the biggest factor in the market, according to the firm, with more than US$875 billion in on-loan securities generating 36 per cent more revenue YoY.
Corporate debt lending saw more modest annual gains, with revenue increasing 5 per cent globally. Fees for corporate bonds fell 15 per cent YoY, but revenue increased due to a 23 per cent jump in balances.
The top five earning securities in November were Tempus AI, Spirit Airlines, Enbridge, iShares iBoxx $ Inv Grade Corporate Bond ETF, and Trump Media and Technology Corporation. The five securities in total generated US$61 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 3 per cent YoY for the month, totalling an additional US$208 million in revenue.
In its monthly review, DataLend says equity revenue declined globally by 6 per cent due to a 14 per cent YoY drop in fees.
With US equity indexes soaring after the presidential election, lending revenue for US stocks fell by 12 per cent, with average fees declining 25 per cent YoY.
Equity revenue in EMEA and APAC saw gains of 6 per cent and 2 per cent YoY respectively.
“The Taiwan and Hong Kong markets were bright spots,” says DataLend, “with the former capturing 30 per cent in annual gains and the latter climbing 26 per cent.”
Global government debt lending revenue increased 23 per cent YoY on the back of a 20 per cent YoY rise in balances and a 3 per cent YoY increase in fees.
US government debt remained the biggest factor in the market, according to the firm, with more than US$875 billion in on-loan securities generating 36 per cent more revenue YoY.
Corporate debt lending saw more modest annual gains, with revenue increasing 5 per cent globally. Fees for corporate bonds fell 15 per cent YoY, but revenue increased due to a 23 per cent jump in balances.
The top five earning securities in November were Tempus AI, Spirit Airlines, Enbridge, iShares iBoxx $ Inv Grade Corporate Bond ETF, and Trump Media and Technology Corporation. The five securities in total generated US$61 million in revenue for the month.
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