Global securities lending revenue hits US$1.7bn for October
04 November 2026 Global
Image: Anca/stock.adobe.com
Global securities lending revenue increased 20 per cent year-on-year (YoY) to US$1.7 billion in October, according to S&P Global Market Intelligence data.
The increase pushed year-to-date revenue to US$15.86 billion, surpassing the total revenues generated across the entirety of 2025.
October's growth was driven by borrowing activity as average balances rose 28 per cent to US$4.17 trillion, utilisation increased 12 per cent, and average fees declined six per cent.
Asian equities remained the primary growth driver, with revenue rising 72 per cent to US$599 million on the back of stronger balances and fees.
Taiwan and Hong Kong each generated US$173 million in revenue, while South Korea contributed US$121 million to the regional total.
These gains coincided with weakness across technology-heavy Asian markets as investors reassessed artificial intelligence investment returns.
EMEA equities delivered another positive performance, with revenue increasing 38 per cent to US$118 million, led by an 82 per cent surge in France.
Americas equities remained the notable exception to the global growth trend, with revenue declining 29 per cent to US$351 million.
Although balances increased 32 per cent, average fees fell 46 per cent due to persistent pressure from lower borrowing premiums, and ample market supply.
US revenue dropped 31 per cent over the month, further highlighting the compression of lending premiums within the domestic market.
Exchange traded product revenues increased 41 per cent to US$170 million, which was driven by higher fees.
Government bond revenues rose 48 per cent to US$295 million, supported by a 32 per cent increase in balances, a 12 per cent rise in fees, and utilisation levels reaching 23.9 per cent.
Corporate bond revenues increased 24 per cent to US$108 million over the same period, predominantly driven by higher average balances.
These fixed income gains coincided with government bond yields retreating from September’s highs as investors actively sought higher-quality assets.
Falling yields supported sovereign and investment-grade returns, providing a stable backdrop for positioning, hedging, and collateral-related activity.
Matt Chessum, executive director of equity and analytic products at S&P Global Market Intelligence, says: “With US$56 trillion of lendable assets, October demonstrated the depth of the market, but revenue opportunities remained selective.
“Asia’s stronger fees contrasted with continued compression in US equities, while fixed income delivered substantial growth.
“Looking towards December, I’ll be watching how year-end positioning shapes collateral demand, and whether borrowing premiums strengthen.”
The increase pushed year-to-date revenue to US$15.86 billion, surpassing the total revenues generated across the entirety of 2025.
October's growth was driven by borrowing activity as average balances rose 28 per cent to US$4.17 trillion, utilisation increased 12 per cent, and average fees declined six per cent.
Asian equities remained the primary growth driver, with revenue rising 72 per cent to US$599 million on the back of stronger balances and fees.
Taiwan and Hong Kong each generated US$173 million in revenue, while South Korea contributed US$121 million to the regional total.
These gains coincided with weakness across technology-heavy Asian markets as investors reassessed artificial intelligence investment returns.
EMEA equities delivered another positive performance, with revenue increasing 38 per cent to US$118 million, led by an 82 per cent surge in France.
Americas equities remained the notable exception to the global growth trend, with revenue declining 29 per cent to US$351 million.
Although balances increased 32 per cent, average fees fell 46 per cent due to persistent pressure from lower borrowing premiums, and ample market supply.
US revenue dropped 31 per cent over the month, further highlighting the compression of lending premiums within the domestic market.
Exchange traded product revenues increased 41 per cent to US$170 million, which was driven by higher fees.
Government bond revenues rose 48 per cent to US$295 million, supported by a 32 per cent increase in balances, a 12 per cent rise in fees, and utilisation levels reaching 23.9 per cent.
Corporate bond revenues increased 24 per cent to US$108 million over the same period, predominantly driven by higher average balances.
These fixed income gains coincided with government bond yields retreating from September’s highs as investors actively sought higher-quality assets.
Falling yields supported sovereign and investment-grade returns, providing a stable backdrop for positioning, hedging, and collateral-related activity.
Matt Chessum, executive director of equity and analytic products at S&P Global Market Intelligence, says: “With US$56 trillion of lendable assets, October demonstrated the depth of the market, but revenue opportunities remained selective.
“Asia’s stronger fees contrasted with continued compression in US equities, while fixed income delivered substantial growth.
“Looking towards December, I’ll be watching how year-end positioning shapes collateral demand, and whether borrowing premiums strengthen.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 91ԭƬ Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 91ԭƬ Times
