DataLend: Global securities lending revenue falls 12% YoY for August
04 September 2024 Global
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Global securities finance revenue for lenders decreased 12 per cent year-on-year (YoY) for August, generating US$831 million, says DataLend.
The market data service of EquiLend reports that global broker-to-broker activity 鈥� where broker-dealers lend and borrow securities from each other 鈥� was down 8 per cent YoY for the month, totalling an additional US$221 million in revenue.
In its monthly review, DataLend says equity trends observed in July largely held true for August, as US equity lending revenue fell 23 per cent YoY.
Average fees remained well below their 2023 levels with the US posting a 28 per cent dip in borrow cost from the same period last year.
Declining fees have been indicative of fewer securities trading 鈥渟pecial鈥� as market indexes continue to rise.
In August, revenue generated from specials was down 30 per cent compared to August 2023.
Though equity revenues declined across global regions, Taiwanese stocks remained a 鈥渂right spot鈥� in APAC, generating the second most revenue globally and a 44 per cent increase YoY.
In EMEA, the UK and France continued to perform well versus 2023, with revenue increases of 39 per cent and 62 per cent, respectively.
Even with central bank rate cuts likely on the horizon in the US, says DataLend, sovereign debt lending continued to warm in August with a month-over-month average fee increase of 22 per cent for US treasuries.
Lending revenue for US government debt climbed 18 per cent YoY, the firm reports.
Corporate debt continued to cool off with a 20 per cent decline in global revenue YoY.
The dip was largely driven by a 32 per cent fall in US investment-grade corporate lending revenue.
The top five earning securities in August were Sirius XM Holdings, Cassava Sciences, Beyond Meat, Tempus AI and Enbridge. The five securities in total generated US$109 million in revenue for the month.
The market data service of EquiLend reports that global broker-to-broker activity 鈥� where broker-dealers lend and borrow securities from each other 鈥� was down 8 per cent YoY for the month, totalling an additional US$221 million in revenue.
In its monthly review, DataLend says equity trends observed in July largely held true for August, as US equity lending revenue fell 23 per cent YoY.
Average fees remained well below their 2023 levels with the US posting a 28 per cent dip in borrow cost from the same period last year.
Declining fees have been indicative of fewer securities trading 鈥渟pecial鈥� as market indexes continue to rise.
In August, revenue generated from specials was down 30 per cent compared to August 2023.
Though equity revenues declined across global regions, Taiwanese stocks remained a 鈥渂right spot鈥� in APAC, generating the second most revenue globally and a 44 per cent increase YoY.
In EMEA, the UK and France continued to perform well versus 2023, with revenue increases of 39 per cent and 62 per cent, respectively.
Even with central bank rate cuts likely on the horizon in the US, says DataLend, sovereign debt lending continued to warm in August with a month-over-month average fee increase of 22 per cent for US treasuries.
Lending revenue for US government debt climbed 18 per cent YoY, the firm reports.
Corporate debt continued to cool off with a 20 per cent decline in global revenue YoY.
The dip was largely driven by a 32 per cent fall in US investment-grade corporate lending revenue.
The top five earning securities in August were Sirius XM Holdings, Cassava Sciences, Beyond Meat, Tempus AI and Enbridge. The five securities in total generated US$109 million in revenue for the month.
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