Global lender revenue up 17% YoY in H1, says DataLend
01 July 2021 US
Image: ABC Vector/adobe.stock.com
Global securities lending activity during the first six months of 2021 contributed $4.5 billion in revenue for lenders, according to figures released today by Datalend, the market data arm of EquiLend.
This represents a 17 per cent rise year-on-year (YoY) from the $3.9 billion in revenue generated in H1 2020. Growth in lending revenues from fixed income securities were a primary driver, accounting for a 23% increase over the first half of 2020, powered by rising loan values of government debt.
Equities revenue rose 15 per cent YoY for the equivalent period, fuelled by stronger demand for IPOs and special-purpose acquisition companies (SPACs), along with short squeeze activity, particularly linked to meme stocks, in January.
For monthly activity, global securities lending revenues climbed by two per cent month-on-month to $859 million during June.
June revenues were up 11 percent over the June 2020 figure, pushed by equity lending revenues in the Americas which climbed 18 per cent.
The biggest revenue generators in the securities lending market during June 2021 were Upstart Holdings (UPST), SoFI Technologies (SOFI), UiPath Inc (PATH), Skillz Inc (SKLZ) and Churchill Capital Corp IV (CCIV).
These five equity securities collectively generated more than $92 million during June. The top 11 revenue-generating securities over the month were all US equities.
For broker-to-broker transactions, where broker-dealers borrow and lend to each other, revenue fell 22% YoY to $263 million in June.
This represents a 17 per cent rise year-on-year (YoY) from the $3.9 billion in revenue generated in H1 2020. Growth in lending revenues from fixed income securities were a primary driver, accounting for a 23% increase over the first half of 2020, powered by rising loan values of government debt.
Equities revenue rose 15 per cent YoY for the equivalent period, fuelled by stronger demand for IPOs and special-purpose acquisition companies (SPACs), along with short squeeze activity, particularly linked to meme stocks, in January.
For monthly activity, global securities lending revenues climbed by two per cent month-on-month to $859 million during June.
June revenues were up 11 percent over the June 2020 figure, pushed by equity lending revenues in the Americas which climbed 18 per cent.
The biggest revenue generators in the securities lending market during June 2021 were Upstart Holdings (UPST), SoFI Technologies (SOFI), UiPath Inc (PATH), Skillz Inc (SKLZ) and Churchill Capital Corp IV (CCIV).
These five equity securities collectively generated more than $92 million during June. The top 11 revenue-generating securities over the month were all US equities.
For broker-to-broker transactions, where broker-dealers borrow and lend to each other, revenue fell 22% YoY to $263 million in June.
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