Securities lending revenue up 5% YoY for February
04 March 2025 Global
Image: Imsuniyah/stock.adobe.com
Global securities lending revenue reached US$876 million in February, marking a 5 per cent increase compared to the previous year, S&P Global Market Intelligence reports.
Notably, revenue from Asian equities grew by 29 per cent year-over-year (YoY), reaching US$186 million, while revenue from Americas equities saw a decline of 21 per cent YoY, amounting to US$268 million.
EMEA equities recorded a “modest growth” of 2 per cent YoY, generating US$55 million.
According to the multi-asset class and real-time data provider, government bonds and ETFs continued to demonstrate robust growth.
Average fees increased across both asset classes, rising by 8 per cent for government bonds and 70 per cent for ETFs.
When combined with rising balances of 13 per cent in government bonds and 30 per cent in ETFs, monthly revenue soared by 18 per cent for government bonds to US$168 million and a 114 per cent YoY for ETFs to US$87 million.
The top three revenue-generating stocks for the month included Endeavor Group Holdings, a North American media and entertainment company, generating US$21.8 million; Enbridge, a Canadian energy company, contributing US$10.7 million; and iShares iBoxx High Yield Bond ETF, which generated US$6.9 million.
Matt Chessum, director of securities finance at S&P Global Market Intelligence, comments: “The securities lending markets capitalised on the increased volatility driven by a complex geopolitical landscape throughout the month.
“ETF revenues soared as volatility propelled gold prices to record highs, corporate bond spreads tightened, and tariff uncertainties prompted further hedging and positioning.”
He notes that a resurgence in activity was observed in the APAC region as Chinese tech companies bolstered regional markets, with investors positioning themselves ahead of potential supply chain disruptions and ongoing economic uncertainty.
“Despite the heightened volatility, equity markets in the US and EMEA reached new all-time highs,” adds Chessum. “This upward momentum, combined with increased volatility and a blend of economic and geopolitical uncertainties, is expected to drive further demand for securities lending in the upcoming months.”
Notably, revenue from Asian equities grew by 29 per cent year-over-year (YoY), reaching US$186 million, while revenue from Americas equities saw a decline of 21 per cent YoY, amounting to US$268 million.
EMEA equities recorded a “modest growth” of 2 per cent YoY, generating US$55 million.
According to the multi-asset class and real-time data provider, government bonds and ETFs continued to demonstrate robust growth.
Average fees increased across both asset classes, rising by 8 per cent for government bonds and 70 per cent for ETFs.
When combined with rising balances of 13 per cent in government bonds and 30 per cent in ETFs, monthly revenue soared by 18 per cent for government bonds to US$168 million and a 114 per cent YoY for ETFs to US$87 million.
The top three revenue-generating stocks for the month included Endeavor Group Holdings, a North American media and entertainment company, generating US$21.8 million; Enbridge, a Canadian energy company, contributing US$10.7 million; and iShares iBoxx High Yield Bond ETF, which generated US$6.9 million.
Matt Chessum, director of securities finance at S&P Global Market Intelligence, comments: “The securities lending markets capitalised on the increased volatility driven by a complex geopolitical landscape throughout the month.
“ETF revenues soared as volatility propelled gold prices to record highs, corporate bond spreads tightened, and tariff uncertainties prompted further hedging and positioning.”
He notes that a resurgence in activity was observed in the APAC region as Chinese tech companies bolstered regional markets, with investors positioning themselves ahead of potential supply chain disruptions and ongoing economic uncertainty.
“Despite the heightened volatility, equity markets in the US and EMEA reached new all-time highs,” adds Chessum. “This upward momentum, combined with increased volatility and a blend of economic and geopolitical uncertainties, is expected to drive further demand for securities lending in the upcoming months.”
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