Securities lending revenues up 8.6% YoY in January
05 February 2025 UK
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Global securities lending revenues were up 8.6 per cent year-on-year (YoY) to US$929.4 million in January, according to S&P Global Market Intelligence.
The equity segment generated US$653.5 million, reflecting a growth of 6.7 per cent YoY.
The Americas equity market slowed down when compared to January 2024, with a revenue decline of 11.1 per cent, primarily driven by a decrease in fees.
The YoY growth seen across the equity market came from a 21 per cent YoY increase in revenues from the APAC region, after Hong Kong equities experienced a strong month, and EMEA equities experienced a notably increased demand, says Matthew Chessum, director of securities finance at S&P Global Market Intelligence.
Government bonds saw a revenue increase of 20.9 per cent, indicating a healthy appetite for fixed income securities amid fluctuating market conditions.
Asian equities stood out, with revenue growth of 21 per cent leading it to reach US$181.3 million, largely fuelled by strong demand in the region.
Conversely, the Americas equity sector, particularly American depository receipts (ADR), faced a decline of 18.4 per cent, resulting in revenues of US$22.5 million.
Additionally, the exchange traded products (ETP) market continued to show resilience, with a 104.5 per cent jump, underscoring its growing popularity among investors.
Commenting on the findings, Chessum says: “2025 has commenced on a strong note, with several asset classes witnessing notable increases throughout January. However, the month was marked by considerable uncertainty in the financial markets, as the new US administration began to establish its footing and implement its fresh approach to global trade.
“This rise in geopolitical risk, coupled with the ambiguity surrounding these new policies, has resulted in sharp fluctuations in both currency markets and specific sectors of the equity markets, ultimately creating opportunities for both borrowers and lenders. We anticipate that this dynamic will persist throughout the first half of 2025.”
The equity segment generated US$653.5 million, reflecting a growth of 6.7 per cent YoY.
The Americas equity market slowed down when compared to January 2024, with a revenue decline of 11.1 per cent, primarily driven by a decrease in fees.
The YoY growth seen across the equity market came from a 21 per cent YoY increase in revenues from the APAC region, after Hong Kong equities experienced a strong month, and EMEA equities experienced a notably increased demand, says Matthew Chessum, director of securities finance at S&P Global Market Intelligence.
Government bonds saw a revenue increase of 20.9 per cent, indicating a healthy appetite for fixed income securities amid fluctuating market conditions.
Asian equities stood out, with revenue growth of 21 per cent leading it to reach US$181.3 million, largely fuelled by strong demand in the region.
Conversely, the Americas equity sector, particularly American depository receipts (ADR), faced a decline of 18.4 per cent, resulting in revenues of US$22.5 million.
Additionally, the exchange traded products (ETP) market continued to show resilience, with a 104.5 per cent jump, underscoring its growing popularity among investors.
Commenting on the findings, Chessum says: “2025 has commenced on a strong note, with several asset classes witnessing notable increases throughout January. However, the month was marked by considerable uncertainty in the financial markets, as the new US administration began to establish its footing and implement its fresh approach to global trade.
“This rise in geopolitical risk, coupled with the ambiguity surrounding these new policies, has resulted in sharp fluctuations in both currency markets and specific sectors of the equity markets, ultimately creating opportunities for both borrowers and lenders. We anticipate that this dynamic will persist throughout the first half of 2025.”
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