Securities lending revenue up 20% to $828m in April

The global securities lending industry generated $828 million in revenue for lenders in April 2022, according to DataLend, the market data service of fintech EquiLend.

The figure represents a 20% increase year over year from the $690 million generated in April 2021.

Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $229 million in revenue in April, a 16% increase from 2021.

According to DataLend, the increase in lender-to-broker revenue over 2021 was driven primarily by equity lending, where the average fee increased by 18%.

“More specifically, North American equities saw a 39% increase in the average fee year over year,” said DataLend.

“Fixed income markets also experienced increases, with lending revenue from corporate debt up 78% and government debt up 6% relative to 2021.

“Similarly to equities, the rise in corporate debt revenue was driven by a 71% increase in the average fee.

“The top five earners in April 2022 were Rivian Automotive (RIVN), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), Sweetgreen (SG), Beyond Meat (BYND) and GameStop (GME).

“The five securities in total generated over $53 million in revenue in the month.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.