Securities lending revenue up 11% YoY for October, says S&P Global Market Intelligence
04 November 2024 Global
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Securities lending revenue increased 11 per cent year-over-year to US$991 million for October, according S&P Global Market Intelligence.
Revenues across all asset classes showed growth compared to October 2023, with the exception of Asian equities, which experienced a slight decline of 2 per cent.
Specifically, revenues from Americas equities totalled US$323 million, marking a 12 per cent increase, while Asia equities generated US$197 million, down 2 per cent.
EMEA equities contributed US$63 million, a 7 per cent rise from the previous year, the firm says.
Notably, average fees for Americas equities surged by 23 per cent YoY to 69 basis points, raising the overall average for all equities to 75bps, an increase of 7 per cent YoY.
Additionally, revenues from ETFs and American depository receipts (ADRs) also showed positive YoY revenue growth.
The fixed income markets continued to demonstrate strong performance, with government bond revenues climbing 34 per cent YoY to US$194 million, and corporate bond revenues increasing by 6 per cent to US$88 million.
Balances in both asset classes grew significantly, rising by 14 per cent for government bonds and 23 per cent for corporate bonds.
Commenting on the October results, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: 鈥淥verall, securities lending revenues remain robust as we enter the final quarter of the year.
鈥淭hematic investment strategies related to the US Presidential election, anticipated interest rate movements, and ongoing geopolitical tensions are benefiting lenders.鈥�
Chessum also highlights that October witnessed notable volatility in both equity and bond markets. 鈥淪hould this trend persist into year-end, the securities lending market, with year-to-date revenues currently at US$9.806 billion, is positioned for another strong year of returns.鈥�
Revenues across all asset classes showed growth compared to October 2023, with the exception of Asian equities, which experienced a slight decline of 2 per cent.
Specifically, revenues from Americas equities totalled US$323 million, marking a 12 per cent increase, while Asia equities generated US$197 million, down 2 per cent.
EMEA equities contributed US$63 million, a 7 per cent rise from the previous year, the firm says.
Notably, average fees for Americas equities surged by 23 per cent YoY to 69 basis points, raising the overall average for all equities to 75bps, an increase of 7 per cent YoY.
Additionally, revenues from ETFs and American depository receipts (ADRs) also showed positive YoY revenue growth.
The fixed income markets continued to demonstrate strong performance, with government bond revenues climbing 34 per cent YoY to US$194 million, and corporate bond revenues increasing by 6 per cent to US$88 million.
Balances in both asset classes grew significantly, rising by 14 per cent for government bonds and 23 per cent for corporate bonds.
Commenting on the October results, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: 鈥淥verall, securities lending revenues remain robust as we enter the final quarter of the year.
鈥淭hematic investment strategies related to the US Presidential election, anticipated interest rate movements, and ongoing geopolitical tensions are benefiting lenders.鈥�
Chessum also highlights that October witnessed notable volatility in both equity and bond markets. 鈥淪hould this trend persist into year-end, the securities lending market, with year-to-date revenues currently at US$9.806 billion, is positioned for another strong year of returns.鈥�
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