DataLend: April 2024 Securities Lending Revenue Down 20% YoY to $846 Million
Slowdown for U.S. and EMEA equities drives decreased revenue
May 3, 2024
NEW YORK (May 3, 2024)—The global securities finance industry generated $846 million in revenue for lenders in April 2024, according to DataLend, the market data service of fintech EquiLend. The figure represents a 20% decrease from the $1.05 billion generated in April 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $242 million in revenue in April, down 13% year-over-year.
Global equity lending revenue declined due to lagging performance in the United States and EMEA. U.S. equities posted a sharp 28% decline in revenue year-over-year due to a 32% dip in fees. Trump Media & Technology Group (DJT), represented the security trading the most “special” on the month, but a limited supply of just 2.5 million lendable shares capped potential revenue. In EMEA, equity revenues were down 29% owing primarily to a 24% drop in balances.
APAC equity revenue was flat from 2023 thanks to improved revenue performance in Taiwan (+57%) and Japan (+7%). In Japan, a 28% increase in fees offset a 16% drop in balances. In Taiwan, a 57% increase in balances accounted for the improved revenue.
Global fixed income revenue declined 15% year-over-year due to flat sovereign lending performance but a steep 36% decline in corporate debt revenue. Corporate debt performance was down across the board, with investment-grade issuances generating 26% less revenue and high-yield issuances garnering 10% less revenue. The average fee for corps was down 41% globally, driving the overall dip.
The top five earning securities in April were Trump Media & Technology Group (DJT US), Lucid Group Inc. (LCID US), ImmunityBio Inc. (IBRX US), SGS SA (SGSN SE) and B Riley Financial (RILY US). The five securities in total generated over $67 million in revenue for the month.
