Securities lending revenues grow 12% YoY for May
03 June 2025 US
Image: Viktor/stock.adobe.com
Securities lending revenues grew 12 per cent year-on-year (YoY) to US$1.202 billion for May, according to S&P Global Market Intelligence.
Although average fees experienced a slight decline of 2 per cent YoY across all securities, a recovery in valuations throughout the month led to a 14 per cent rise in balances compared to May 2024.
Equity performance mirrored trends from previous months, says the firm.
In the Americas, equity revenues totalled US$355 million, reflecting an 11 per cent YoY decrease.
Conversely, Asian equity revenues surged by 27 per cent YoY, reaching US$229 million.
Additionally, American depository receipts (ADRs) and ETFs maintained their robust performance, with average fees increasing by 76 per cent and 36 per cent YoY, respectively.
The fixed income markets also displayed resilience, with average fees of 28 basis points for corporate bonds and 16 basis points for government bonds.
Commenting on the month’s performance, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: "Market activity in May was marked by volatility, as the equity market rebounded from the previous month's losses.”
As an example, Chessum gave the S&P 500, which experienced a gain of more than 6 per cent, achieving one of its strongest monthly performances since late 2023.
He added: “The easing of short sale regulations, coupled with heightened activity across ADRs, ETFs, fixed income assets, and Asian equities, contributed to robust returns for all market participants throughout the month."
Although average fees experienced a slight decline of 2 per cent YoY across all securities, a recovery in valuations throughout the month led to a 14 per cent rise in balances compared to May 2024.
Equity performance mirrored trends from previous months, says the firm.
In the Americas, equity revenues totalled US$355 million, reflecting an 11 per cent YoY decrease.
Conversely, Asian equity revenues surged by 27 per cent YoY, reaching US$229 million.
Additionally, American depository receipts (ADRs) and ETFs maintained their robust performance, with average fees increasing by 76 per cent and 36 per cent YoY, respectively.
The fixed income markets also displayed resilience, with average fees of 28 basis points for corporate bonds and 16 basis points for government bonds.
Commenting on the month’s performance, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: "Market activity in May was marked by volatility, as the equity market rebounded from the previous month's losses.”
As an example, Chessum gave the S&P 500, which experienced a gain of more than 6 per cent, achieving one of its strongest monthly performances since late 2023.
He added: “The easing of short sale regulations, coupled with heightened activity across ADRs, ETFs, fixed income assets, and Asian equities, contributed to robust returns for all market participants throughout the month."
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