Global securities lending revenue down 11% YoY for July, says DataLend
05 August 2024 US
Image: RISHAD/stock.adobe.com
The global securities finance industry faced an 11 per cent year-over-year (YoY) decline in revenue in July, generating US$843 million for lenders, according to DataLend.
The company also noted a 20 per cent YoY fall in US equity lending revenue for the same month.
Decreased fees were the driver, with the average cost to borrow for US stocks down 21 per cent compared to July 2023, according to DataLend.
However, with fees bouncing in July, US equities showed positive momentum with a 22 per cent revenue increase month-over-month.
Global broker-to-broker activity totalled US$219 million in revenue in July, down 7 per cent YoY.
In the global equity lending market, Taiwanese securities continued to generate strong returns, with revenue increasing 59 per cent YoY.
Loan balances for Taiwan equities climbed 43 per cent and fees increased 11 per cent compared to 2023.
In fixed income, global lending revenue for corporate bonds continued to cool, falling 23 per cent YoY.
DataLend says that the dip was driven by investment-grade issuances, where a 28 per cent drop in fees led to a 21 per cent decline in revenue.
Global sovereign debt revenue improved 8 per cent YoY as balances climbed 15 per cent.
US Treasury lending accounted for the bulk of the improvement, with revenue rising 14 per cent, DataLend reports.
The top five earning securities in July were Sirius XM Holdings, Lucid Group, Beyond Meat, ImmunityBio, and NuScale Power.
These five securities in total generated US$87 million in revenue for the month.
The company also noted a 20 per cent YoY fall in US equity lending revenue for the same month.
Decreased fees were the driver, with the average cost to borrow for US stocks down 21 per cent compared to July 2023, according to DataLend.
However, with fees bouncing in July, US equities showed positive momentum with a 22 per cent revenue increase month-over-month.
Global broker-to-broker activity totalled US$219 million in revenue in July, down 7 per cent YoY.
In the global equity lending market, Taiwanese securities continued to generate strong returns, with revenue increasing 59 per cent YoY.
Loan balances for Taiwan equities climbed 43 per cent and fees increased 11 per cent compared to 2023.
In fixed income, global lending revenue for corporate bonds continued to cool, falling 23 per cent YoY.
DataLend says that the dip was driven by investment-grade issuances, where a 28 per cent drop in fees led to a 21 per cent decline in revenue.
Global sovereign debt revenue improved 8 per cent YoY as balances climbed 15 per cent.
US Treasury lending accounted for the bulk of the improvement, with revenue rising 14 per cent, DataLend reports.
The top five earning securities in July were Sirius XM Holdings, Lucid Group, Beyond Meat, ImmunityBio, and NuScale Power.
These five securities in total generated US$87 million in revenue for the month.
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