April 4, 2022
Securities Lending Revenue Rose 32% YOY in March 2022
The global securities finance industry generated $2.17 billion in revenue for lenders in the first quarter of 2022, according to DataLend, the market data service of fintech Equilend.
NEW YORK (APRIL 4, 2022)—The global securities finance industry generated $2.17 billion in revenue for lenders in the first quarter of 2022, according to DataLend, the market data service of fintech Equilend.
The figure represents a 5% increase from the $2.07 billion generated in Q1 2021. Revenue from equities decreased by less than 1% year over year to $1.64 billion, while fixed income securities increased by 27% over the same time frame to $534 million. The revenue increase was attributed to corporate debt, where the average on-loan balances increased by 33% and the average fee increased by 59%.
In March 2022 alone, the global securities finance industry generated $836 million in revenue for lenders. The figure represents a significant 32% increase year over year from the $632 million generated in March 2021.
According to DataLend, the year-over-year increase in lender-to-broker revenue was primarily driven by North American equities, where continued demand in SPACs, IPOs and high-yield corporate debt ETFs drove up the average fee to 61 bps, a 30% increase over March 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $251 million in revenue in March, a 1% increase from 2021.
The top five earners in March 2022 were Lucid Group (LCID), Dutch Bros (BROS), Digital World Acquisition (DWAC), iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Rivian Automotive (RIVN). The five securities in total generated over $58 million in revenue in the month.
Equilend Data & Analytics
Equilend Data & Analytics tracks real-time securities finance market movements across more than 210,000 securities, covering $40 trillion in lendable assets and $2.7 trillion in on-loan assets.
