Monthly Securities Finance Market Review: January 2025
Equilend’s Head of Trading Solutions, Mike Norwood, shares his monthly market review for securities finance, highlighting January trends seen across NGT. The following data has been measured and derived from Equilend NGT.
Trading by Sector for January: The Global Picture
2025 started with strong volumes in the securities lending market as Equilend’s NGT platform saw 2,935,432 trades executed v. $2.95T in January (+6% from December). Volatility returned to the global markets with expectations of inflationary policy by the Trump administration facing off with strong economic metrics (GDP and employment) in the first half of the month with Deepseek putting the tech sector under pressure in the second half.
Demand for US equities was relatively flat (-1% month over month) as US indices were high on economic optimism with information technology names staying in focus as AI names came under pressure. EMEA saw a 13% increase in trade activity as regional indices were broadly up on the back of marginal gains in macro data (Purchasing Managers Index (PMI) and retail sales). The UK was up 17% as some weakness in GBP provided tailwinds for the market and created opportunities for selling. Japan saw a 25bps rate hike dampen enthusiasm in the equity market, creating a relatively flat performance, while securities lending activity was up 3% from December. Overall, demand in the APAC region was flat (-1%) as Hong Kong activity dropped by 9% on the back of positive Chinese economic data.
Global bonds continued to be in high demand with EMEA (+41%) and APAC (+35%) as bond indices experienced heightened volatility but ultimately rallied driven by weaker than expected inflation and the tech selloff in the US. Overall, sovereign debt volumes saw increases on platform, with +60% in EMEA and +78% in APAC particular highlights. Credit was in demand as well with high yield (+28% month over month) as spreads tightened between investment grade (+17%) and high yield.
Politics and technology will remain in focus in the near term as the US tariff policy evolves and and should create a climate conducive to volatility and therefore activity in the SBL market.
Within global equities, NGT’s most in-demand sectors were:
Stay tuned for the latest securities finance trends, trading analysis and commentary with Equilend’s Monthly Trading Commentary across 2025.
