Securities Finance July Snapshot 2024

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Revenues grow MoM as inventory hits record levels

• Monthly revenues decline by 9% YoY to $1.029B
• Exchange Traded Product revenues grow YoY
• Government bond balances continue to grow YoY
• Inventory surpasses $39.7T (July 17th) for the first time ever

In the securities lending markets, revenues of $1.029B were generated. This represents a 9% decline YoY. Average balances noted a 4% YoY increase across all securities as lendable continued to surge 16% YoY, surpassing a monthly average of $38.9T.

Equity revenues declined across all regions during the month. EMEA equities continued to experience the largest YoY declines, but these have started to temper somewhat over the last few months, with July experiencing a decline of 20% YoY. Across the Americas, revenues declined 15% YoY to $435M. Average fees declined 9% YoY but lendable increased by an impressive 22% YoY to $21.7T. The APAC region continued to be one of the strongest performing regions when compared YoY with revenues down only 3%, balances fell just 2% YoY and average fees declined by only 3% YoY to 107bps.

Both depositary receipts and exchange traded products performed well during the month as both asset classes experienced an increase in demand. Revenues across both asset classes increased YoY. Average fees grew by 19% YoY across depositary receipts and 10% YoY across exchange traded products. As with all asset classes during the month, on loan balances continued to grow YoY as asset valuations climbed higher.

In the fixed income markets, government bonds witnessed strong demand during the month which helped to push revenues 7% higher YoY to $164M. This was despite average fees falling by 5% YoY to 16bps. Both balances and utilization climbed higher during the month as movement in interest rates increased demand from borrowers.

Corporate bond revenues continued to show a YoY decline. July produced $81M in market revenues as balances increased 15% YoY and average fees continued to show a YoY decline. Despite this fall, average fees maintained the respectable level of 30bps throughout the month.

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.