DataLend: July 2024 Securities Lending Revenue Down 11% YoY to $843 Million
U.S. equity lending show signs of acceleration despite weaker annual returns
August 5, 2024
NEW YORK (August 5, 2024)—The global securities finance industry generated $843 million in revenue for lenders in July 2024, according to DataLend, the market data service of fintech EquiLend. The figure represents an 11% decrease from the $943 million generated in July 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $219 million in revenue in July, down 7% year-over-year.
Amid a continued bull market, U.S. equity lending revenue remained the most significant laggard, falling 20% year-over-year. Decreased fees were the driver, with the average cost to borrow for U.S. stocks declining 21% from July 2023. However, with fees bouncing in July, U.S. equities showed positive momentum with a 22% revenue increase month-over-month.
In the global equity lending market, Taiwanese securities continued to generate strong returns with revenue increasing 59% year-over-year. Loan balances for Taiwan equities climbed a sharp 43% while fees also increase 11% compared to 2023.
In fixed income, global lending revenue for corporate bonds continued to cool, falling 23% year-on-year. The dip was driven by investment-grade issuances, where a 28% drop in fees led to a 21% decline in revenue.
Global sovereign debt revenue improved 8% year-on-year as balances climbed 15%. U.S. Treasury lending accounted for the bulk of the improvement, with revenue rising 14%.
The top five earning securities in July were Sirius XM Holdings Inc. (SIRI US), Lucid Group Inc. (LCID US), Beyond Meat Inc. (BYND US), ImmunityBio Inc. (IBRX US) and NuScale Power Co. (SMR US). The five securities in total generated $87 million in revenue for the month.
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