Securities lending in 2026: A record year (so far) built on AI, ETFs, and the shift towards Asia
14 October 2026
From a securities lending perspective, the key question is no longer whether revenues will remain elevated, but where the next source of growth will emerge, says Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence
Image: stock.adobe.com/Jacqueline
If the first three quarters of 2026 have demonstrated anything, it is that securities lending remains closely tied to the dominant forces shaping global capital markets. Artificial intelligence investment, rising government bond yields, growing exchange traded fund (ETF) adoption, geopolitical uncertainty, and an active IPO market, have all influenced borrowing demand, utilisation levels, and securities lending revenues. The result has been one of the strongest periods on record for the industry.
According to S&P Global Market Intelligence Securities Finance data, global securities lending revenues reached approximately US$8.8 billion during the first half of 2026, up 33 per cent year-on-year (YoY) and the strongest first half ever recorded. By July, year-to-date revenues had exceeded US$10.6 billion, with average balances on loan consistently above US$4 trillion.
What makes 2026 particularly notable is not simply the record revenues, but the breadth of the drivers behind them. Unlike previous periods where activity was concentrated around a handful of events or sectors, lending demand has emerged across equities, ETFs, government bonds, and corporate bonds, supported by several interconnected themes.
AI becomes the defining market catalyst
Artificial intelligence has been one of the most prominent investment themes. Continued spending on semiconductors, data centres, power infrastructure, and advanced computing has driven equity market performance across multiple regions. That enthusiasm has translated directly into securities lending activity.
Technology and semiconductor companies across Taiwan, South Korea, Japan, and Hong Kong have attracted significant borrower demand as investors sought both directional and hedging exposure. Asian equity lending revenues almost doubled during June, rising 99 per cent YoY to US$524 million, while first half Asian equity revenues approached US$2.4 billion, up approximately 80 per cent from the same period in 2025.
Importantly, this was not purely a valuation story. S&P Global Market Intelligence data shows that balances, utilisation, and fees all increased simultaneously across many Asian markets, indicating genuine growth in borrowing demand rather than a simple increase in market capitalisation. By July, APAC equity revenues reached a record US$584 million for the month, with average fees rising to 170 basis points.
The AI theme has also influenced fixed income markets. Corporates associated with data centres, cloud infrastructure, and semiconductor expansion have remained active issuers within investment grade markets, creating additional demand for corporate bond borrowing, and hedging activity.
Asia overtakes the Americas
Perhaps the most significant structural development of 2026 has been the emergence of Asia Pacific as one of the leading revenue-generating equity lending regions.
Asian equity revenues have surpassed those of the Americas on multiple occasions during the year and overtook US equity lending revenues for the first time ever. This represents a meaningful shift in the global securities lending landscape.
Several factors contributed to this change. The AI investment cycle has disproportionately benefited many Asian markets given their central role in global semiconductor and technology supply chains. At the same time, new listings, corporate actions, and an increase in specials activity concentrated demand in a relatively small group of securities.
Hong Kong, Taiwan, and South Korea have emerged as key drivers. S&P Global Market Intelligence data highlights that APAC specials revenues reached nearly US$1 billion by May, representing their highest level since tracking began in 2010.
Meanwhile, American equity revenues faced a different challenge. Although balances continued to rise, average fees declined sharply as abundant supply and broader market participation reduced pricing power. During June, Americas equity revenues fell 36 per cent YoY despite balances increasing more than 40 per cent.
The contrast between the regions is striking: Asia benefited from scarcity and concentrated demand, while North America increasingly reflected scale and abundance.
ETFs continue their transformation from niche to core market infrastructure
The rise of ETFs has been another defining theme of 2026.
Global ETF assets have reached record levels, with S&P Global Market Intelligence research highlighting industry assets exceeding US$4 trillion and product counts surpassing 15,000 globally.
As ETFs become the preferred instrument for tactical allocation, hedging, and thematic exposure, securities lending activity has followed. During the second quarter, exchange traded products generated approximately US$484 million in securities lending revenues, up 83 per cent YoY. First half ETF lending revenues approached US$877 million, another record.
The relationship between ETFs and securities lending is becoming increasingly important. Borrowers are using ETFs to express views on AI, interest rates, credit markets, and geopolitical risk rather than relying solely on individual stocks. The growth of active, thematic, and fixed income ETFs is also expanding the range of securities available for lending.
This trend appears structural rather than cyclical. ETF growth is expanding both the lendable universe, and the number of instruments investors can use to manage risk efficiently.
Higher yields revive fixed income lending
Rising government bond yields have provided another important source of revenue growth.
Throughout 2026, investors have contended with persistent inflation concerns, fiscal deficits, significant government issuance requirements, and uncertainty surrounding future central bank policy. Long-dated government bond yields remained elevated across several major markets, while Japanese policy normalisation continued to influence global capital flows.
This backdrop created favourable conditions for securities lending. Government bond lending revenues increased more than 40 per cent YoY during both the second quarter and July, with utilisation and balances rising across US Treasury and European sovereign debt markets.
Corporate bonds also benefited from the higher rate environment. Investors increasingly used credit instruments to manage duration and spread exposure, while bond issuance linked to technology and AI infrastructure remained robust. Corporate bond lending revenues rose steadily through the year, supported by higher balances and continued hedging demand.
IPOs rekindle specials activity
The IPO market has continued to act as an important source of lending revenues.
Recent listings such as SpaceX, Circle, and CATL have generated substantial securities lending demand due to their limited free float, concentrated ownership structures, and strong investor interest. According to S&P Global Market Intelligence Securities Finance data, SpaceX alone generated approximately US$51.6 million in lending revenues following its listing, while CATL generated almost US$138 million.
The IPO effect matters because newly listed stocks often create temporary but highly profitable lending opportunities. Borrowers seek access to shares while supply remains constrained, creating elevated utilisation levels and borrowing fees.
With markets continuing to discuss potential future mega-cap listings, IPO driven specials activity could remain an important contributor to lending revenues through the remainder of the year.
Looking ahead to the remainder of 2026
The factors that drove securities lending during the first nine months of the year remain largely intact.
Investment flows continue to favour AI-related themes, while substantial capital expenditure plans across global technology companies suggest the infrastructure build-out is far from complete. Public estimates indicate that hyperscalers could collectively spend hundreds of billions of dollars on AI infrastructure during 2026, supporting continued activity across technology equities, semiconductors, and related credit markets.
ETF adoption also appears likely to continue expanding. Strong flows into both equity and fixed income ETFs suggest investors remain comfortable using these instruments to gain exposure and manage risk across increasingly complex markets.
For fixed income markets, elevated government borrowing needs and continued AI-related corporate financing could support both government and corporate bond lending activity. The combination of large-scale debt issuance, higher yields, and growing investor participation creates a supportive backdrop for borrowers and lenders alike.
From a securities lending perspective, the key question is no longer whether revenues will remain elevated, but where the next source of growth will emerge. The evidence so far suggests Asia remains the region to watch, ETFs continue to reshape market structure, and AI remains a dominant force linking equity, fixed income, and capital markets together. If those themes persist, 2026 may ultimately be remembered not just as another record year for securities lending, but as the year the industry’s centre of gravity began to shift eastwards
According to S&P Global Market Intelligence Securities Finance data, global securities lending revenues reached approximately US$8.8 billion during the first half of 2026, up 33 per cent year-on-year (YoY) and the strongest first half ever recorded. By July, year-to-date revenues had exceeded US$10.6 billion, with average balances on loan consistently above US$4 trillion.
What makes 2026 particularly notable is not simply the record revenues, but the breadth of the drivers behind them. Unlike previous periods where activity was concentrated around a handful of events or sectors, lending demand has emerged across equities, ETFs, government bonds, and corporate bonds, supported by several interconnected themes.
AI becomes the defining market catalyst
Artificial intelligence has been one of the most prominent investment themes. Continued spending on semiconductors, data centres, power infrastructure, and advanced computing has driven equity market performance across multiple regions. That enthusiasm has translated directly into securities lending activity.
Technology and semiconductor companies across Taiwan, South Korea, Japan, and Hong Kong have attracted significant borrower demand as investors sought both directional and hedging exposure. Asian equity lending revenues almost doubled during June, rising 99 per cent YoY to US$524 million, while first half Asian equity revenues approached US$2.4 billion, up approximately 80 per cent from the same period in 2025.
Importantly, this was not purely a valuation story. S&P Global Market Intelligence data shows that balances, utilisation, and fees all increased simultaneously across many Asian markets, indicating genuine growth in borrowing demand rather than a simple increase in market capitalisation. By July, APAC equity revenues reached a record US$584 million for the month, with average fees rising to 170 basis points.
The AI theme has also influenced fixed income markets. Corporates associated with data centres, cloud infrastructure, and semiconductor expansion have remained active issuers within investment grade markets, creating additional demand for corporate bond borrowing, and hedging activity.
Asia overtakes the Americas
Perhaps the most significant structural development of 2026 has been the emergence of Asia Pacific as one of the leading revenue-generating equity lending regions.
Asian equity revenues have surpassed those of the Americas on multiple occasions during the year and overtook US equity lending revenues for the first time ever. This represents a meaningful shift in the global securities lending landscape.
Several factors contributed to this change. The AI investment cycle has disproportionately benefited many Asian markets given their central role in global semiconductor and technology supply chains. At the same time, new listings, corporate actions, and an increase in specials activity concentrated demand in a relatively small group of securities.
Hong Kong, Taiwan, and South Korea have emerged as key drivers. S&P Global Market Intelligence data highlights that APAC specials revenues reached nearly US$1 billion by May, representing their highest level since tracking began in 2010.
Meanwhile, American equity revenues faced a different challenge. Although balances continued to rise, average fees declined sharply as abundant supply and broader market participation reduced pricing power. During June, Americas equity revenues fell 36 per cent YoY despite balances increasing more than 40 per cent.
The contrast between the regions is striking: Asia benefited from scarcity and concentrated demand, while North America increasingly reflected scale and abundance.
ETFs continue their transformation from niche to core market infrastructure
The rise of ETFs has been another defining theme of 2026.
Global ETF assets have reached record levels, with S&P Global Market Intelligence research highlighting industry assets exceeding US$4 trillion and product counts surpassing 15,000 globally.
As ETFs become the preferred instrument for tactical allocation, hedging, and thematic exposure, securities lending activity has followed. During the second quarter, exchange traded products generated approximately US$484 million in securities lending revenues, up 83 per cent YoY. First half ETF lending revenues approached US$877 million, another record.
The relationship between ETFs and securities lending is becoming increasingly important. Borrowers are using ETFs to express views on AI, interest rates, credit markets, and geopolitical risk rather than relying solely on individual stocks. The growth of active, thematic, and fixed income ETFs is also expanding the range of securities available for lending.
This trend appears structural rather than cyclical. ETF growth is expanding both the lendable universe, and the number of instruments investors can use to manage risk efficiently.
Higher yields revive fixed income lending
Rising government bond yields have provided another important source of revenue growth.
Throughout 2026, investors have contended with persistent inflation concerns, fiscal deficits, significant government issuance requirements, and uncertainty surrounding future central bank policy. Long-dated government bond yields remained elevated across several major markets, while Japanese policy normalisation continued to influence global capital flows.
This backdrop created favourable conditions for securities lending. Government bond lending revenues increased more than 40 per cent YoY during both the second quarter and July, with utilisation and balances rising across US Treasury and European sovereign debt markets.
Corporate bonds also benefited from the higher rate environment. Investors increasingly used credit instruments to manage duration and spread exposure, while bond issuance linked to technology and AI infrastructure remained robust. Corporate bond lending revenues rose steadily through the year, supported by higher balances and continued hedging demand.
IPOs rekindle specials activity
The IPO market has continued to act as an important source of lending revenues.
Recent listings such as SpaceX, Circle, and CATL have generated substantial securities lending demand due to their limited free float, concentrated ownership structures, and strong investor interest. According to S&P Global Market Intelligence Securities Finance data, SpaceX alone generated approximately US$51.6 million in lending revenues following its listing, while CATL generated almost US$138 million.
The IPO effect matters because newly listed stocks often create temporary but highly profitable lending opportunities. Borrowers seek access to shares while supply remains constrained, creating elevated utilisation levels and borrowing fees.
With markets continuing to discuss potential future mega-cap listings, IPO driven specials activity could remain an important contributor to lending revenues through the remainder of the year.
Looking ahead to the remainder of 2026
The factors that drove securities lending during the first nine months of the year remain largely intact.
Investment flows continue to favour AI-related themes, while substantial capital expenditure plans across global technology companies suggest the infrastructure build-out is far from complete. Public estimates indicate that hyperscalers could collectively spend hundreds of billions of dollars on AI infrastructure during 2026, supporting continued activity across technology equities, semiconductors, and related credit markets.
ETF adoption also appears likely to continue expanding. Strong flows into both equity and fixed income ETFs suggest investors remain comfortable using these instruments to gain exposure and manage risk across increasingly complex markets.
For fixed income markets, elevated government borrowing needs and continued AI-related corporate financing could support both government and corporate bond lending activity. The combination of large-scale debt issuance, higher yields, and growing investor participation creates a supportive backdrop for borrowers and lenders alike.
From a securities lending perspective, the key question is no longer whether revenues will remain elevated, but where the next source of growth will emerge. The evidence so far suggests Asia remains the region to watch, ETFs continue to reshape market structure, and AI remains a dominant force linking equity, fixed income, and capital markets together. If those themes persist, 2026 may ultimately be remembered not just as another record year for securities lending, but as the year the industry’s centre of gravity began to shift eastwards
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