DataLend: October 2024 Securities Lending Revenue Up 9% YoY to $818 Million
Rate cut and election posturing boosts U.S. debt revenue
November 5, 2024
NEW YORK (November 5, 2024)—The global securities finance industry generated $818 million in revenue for lenders in October 2024, according to DataLend, the market data service of fintech EquiLend. The figure represents a 9% increase from the $751 million generated in October 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $202 million in revenue in October, down 7% year-over-year.
Equity revenue increased globally by a margin of 3% due to a 6% increase in global balances relative to 2023. Despite a lack of deal names or standout “Specials,” revenue in the U.S. rose 7%, with the healthcare and industrial sectors being the biggest contributors. Equity revenue in EMEA ticked up by 2% as a 13% increase in balances offset a 9% decline in fees year-over-year. In Asia-Pacific, equity revenue was roughly flat.
As the market has adjusted for the introduction of the rate-cutting cycle in the U.S., government debt was the standout asset class in October. Global revenue generated by government bonds increased 39% year-over-year largely due to a 22% increase in balances. With the U.S. presidential election looming, lending revenue for U.S.-issued sovereign debt was up a massive 59% as both fees and balances climbed relative to 2023.
Corporate debt lending saw moderate annual gains, with revenue increasing 2% globally. Fees for corporate bonds fell 20% year-over-year, but revenue increased due to a 24% jump in balances.
The top five earning securities in October were the United States Treasury bond 4.125% 15/08/44 (US912810UD80), Tempus AI Inc. (TEM US), Cassava Sciences Inc. (SAVA US), iShares iBoxx $ Inv Grade Corporate Bond ETF (LQD US) and Spirit Airlines Inc. (SAVE US). The five securities in total generated $54 million in revenue for the month.
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