Íø±¬³Ô¹Ï lending breaks records in 2025: A year in review and outlook
20 January 2026
Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence, explores a landmark year for the industry and what is next for the market
Image: Shutterstock
2025 will be remembered as a landmark year for the global securities lending industry, with market participants navigating a dynamic landscape shaped by technological innovation, resurgent dealmaking, and geopolitical disruption.
The sector not only shattered previous revenue records but also demonstrated its resilience and adaptability in the face of rapidly shifting market conditions. As the industry looks to 2026, the momentum from 2025’s achievements sets the stage for another year of opportunity and transformation.
Markets: Three themes drive activity higher
Three major themes defined the securities lending environment in 2025: the AI revolution, a resurgence of M&A activity, and the influence of geopolitical events on fiscal and monetary policy. The AI boom, particularly in Asia, triggered unprecedented demand for technology and semiconductor stocks, with Hong Kong emerging as a regional leader.
M&A activity surged, with high-profile deals such as CoreWeave’s expansion and the Paramount-Skydance merger creating lucrative lending opportunities. Meanwhile, global fiscal and monetary policies responded to heightened geopolitical uncertainty, with central banks adjusting rates and investors recalibrating risk exposures accordingly.
Equity revenues: Asia’s AI boom and a global rotation
Íø±¬³Ô¹Ï lending revenues from equities reached historic levels in 2025, contributing to the overall US$14.91 billion generated by the industry. Asian equities were the clear frontrunner, posting a remarkable 57 per cent year-on-year (YoY) increase and generating over US$3.3 billion in revenue. Hong Kong’s performance was particularly noteworthy: robust demand for AI and tech stocks, alongside financial sector strength, propelled the market to new highs and made it a key contributor to the region’s overall results.
Globally, US equities were also a strong contributor to market revenues during the year as the S&P 500 and Nasdaq posted continual new all-time highs throughout the period. Heading into November and December, market leadership rotated beyond mega-cap US technology stocks, with small-caps and international names gaining traction, pushing revenues increasingly higher.
As the Russell 2000 index reached record highs, US equities experienced annual lending revenues of US$4.8 billion, an increase of 24 per cent YoY. EMEA equities posted US$1.12 billion in annual revenues, an increase of 12 per cent when compared with 2024, with Sweden, Germany, France, and the UK leading returns. Smaller markets such as Poland and Greece, Portugal and Spain also showed emerging promise when compared YoY.
Among the top 10 highest revenue-generating stocks for 2025, Asian technology and semiconductor companies featured prominently, reflecting the region’s pivotal role in the AI revolution. In the Americas, specials revenues were buoyed by M&A activity, with deals like Paramount-Skydance and CoreWeave driving demand for short-term lending.
Figure 1
ETF and ADR revenues: Unprecedented expansion
The ETF and American Depositary Receipt (ADR) sectors delivered record growth and diversification in 2025. Global ETF assets reached US$19.44 trillion in assets under management, a 31 per cent increase from 2024, while actively managed ETFs saw assets climb to US$1.86 trillion, up 59.4 per cent YoY. Íø±¬³Ô¹Ï lending revenues from ETFs hit US$1.158 billion, a 71 per cent jump, with Asian ETF revenues growing fastest at 92 per cent YoY. The US ETF market remained dominant, but the surge in Asian ETF lending highlighted the region’s growing influence.
ADR revenues also soared, finishing the year 62 per cent higher. Investors increasingly used ADRs to short foreign equities, driving up both lending revenues and average fees. The Americas led in ADR growth, with annual revenues posting triple-digit percentage increases as market participants sought alternative routes to express views on global stocks.
Fixed income: Government and corporate bonds set new highs
Fixed income markets delivered robust results for securities lenders in 2025. Government bond lending produced US$2.28 billion in revenues, a 12 per cent increase YoY. US Treasuries were the standout performer as interest rates continued to decline, with over US$1.32 billion in revenues as average fees surpassed 18 basis points. UK and French government bonds also featured among the top 10 revenue-generating government bonds of the year, as fiscal policy remained in focus.
Corporate bonds generated just over US$1 billion in annual securities lending revenues, supported by a 19 per cent increase in balances and sustained utilisation above 6 per cent. Despite a 12 per cent drop-in average fees, growing lendable balances compensated for the decline. The lending environment enabled a wave of highly leveraged deals, including Paramount’s bid for Warner Bros. Discovery, showcasing the convergence of financing channels and the sector’s adaptability.
Figure 2
Additional revenue streams: Cash reinvestment and financing
Beyond direct securities lending, the industry also benefited from favourable interest rate conditions and financing activity. As US interest rates fell, cash reinvestment strategies generated US$2.29 billion in additional revenue, while financing activity produced circa US$666 million. These ancillary streams underscore the breadth of further revenue opportunities available to lenders throughout the year.
2026 Outlook: M&A, IPOs, volatility, and the AI race
Looking ahead, 2026 is set to build on the foundations laid in 2025. M&A activity and IPOs are likely to remain central drivers of securities lending revenue, as high valuations and abundant liquidity support deal flow. Volatility, fuelled by escalating geopolitical risk, will continue to create opportunities for traders and lenders. The AI race between Asia and the US promises further market surprises, with technological competition set to drive sector rotation and lending demand.
Wall Street strategists anticipate another year of double-digit earnings growth, with healthcare, industrials, and energy expected to outperform tech giants. As market participants adapt to shifting policy landscapes and technological innovation, strategic focus on risk management and global diversification will be key to capitalising on emerging opportunities.
The sector not only shattered previous revenue records but also demonstrated its resilience and adaptability in the face of rapidly shifting market conditions. As the industry looks to 2026, the momentum from 2025’s achievements sets the stage for another year of opportunity and transformation.
Markets: Three themes drive activity higher
Three major themes defined the securities lending environment in 2025: the AI revolution, a resurgence of M&A activity, and the influence of geopolitical events on fiscal and monetary policy. The AI boom, particularly in Asia, triggered unprecedented demand for technology and semiconductor stocks, with Hong Kong emerging as a regional leader.
M&A activity surged, with high-profile deals such as CoreWeave’s expansion and the Paramount-Skydance merger creating lucrative lending opportunities. Meanwhile, global fiscal and monetary policies responded to heightened geopolitical uncertainty, with central banks adjusting rates and investors recalibrating risk exposures accordingly.
Equity revenues: Asia’s AI boom and a global rotation
Íø±¬³Ô¹Ï lending revenues from equities reached historic levels in 2025, contributing to the overall US$14.91 billion generated by the industry. Asian equities were the clear frontrunner, posting a remarkable 57 per cent year-on-year (YoY) increase and generating over US$3.3 billion in revenue. Hong Kong’s performance was particularly noteworthy: robust demand for AI and tech stocks, alongside financial sector strength, propelled the market to new highs and made it a key contributor to the region’s overall results.
Globally, US equities were also a strong contributor to market revenues during the year as the S&P 500 and Nasdaq posted continual new all-time highs throughout the period. Heading into November and December, market leadership rotated beyond mega-cap US technology stocks, with small-caps and international names gaining traction, pushing revenues increasingly higher.
As the Russell 2000 index reached record highs, US equities experienced annual lending revenues of US$4.8 billion, an increase of 24 per cent YoY. EMEA equities posted US$1.12 billion in annual revenues, an increase of 12 per cent when compared with 2024, with Sweden, Germany, France, and the UK leading returns. Smaller markets such as Poland and Greece, Portugal and Spain also showed emerging promise when compared YoY.
Among the top 10 highest revenue-generating stocks for 2025, Asian technology and semiconductor companies featured prominently, reflecting the region’s pivotal role in the AI revolution. In the Americas, specials revenues were buoyed by M&A activity, with deals like Paramount-Skydance and CoreWeave driving demand for short-term lending.
Figure 1
ETF and ADR revenues: Unprecedented expansion
The ETF and American Depositary Receipt (ADR) sectors delivered record growth and diversification in 2025. Global ETF assets reached US$19.44 trillion in assets under management, a 31 per cent increase from 2024, while actively managed ETFs saw assets climb to US$1.86 trillion, up 59.4 per cent YoY. Íø±¬³Ô¹Ï lending revenues from ETFs hit US$1.158 billion, a 71 per cent jump, with Asian ETF revenues growing fastest at 92 per cent YoY. The US ETF market remained dominant, but the surge in Asian ETF lending highlighted the region’s growing influence.
ADR revenues also soared, finishing the year 62 per cent higher. Investors increasingly used ADRs to short foreign equities, driving up both lending revenues and average fees. The Americas led in ADR growth, with annual revenues posting triple-digit percentage increases as market participants sought alternative routes to express views on global stocks.
Fixed income: Government and corporate bonds set new highs
Fixed income markets delivered robust results for securities lenders in 2025. Government bond lending produced US$2.28 billion in revenues, a 12 per cent increase YoY. US Treasuries were the standout performer as interest rates continued to decline, with over US$1.32 billion in revenues as average fees surpassed 18 basis points. UK and French government bonds also featured among the top 10 revenue-generating government bonds of the year, as fiscal policy remained in focus.
Corporate bonds generated just over US$1 billion in annual securities lending revenues, supported by a 19 per cent increase in balances and sustained utilisation above 6 per cent. Despite a 12 per cent drop-in average fees, growing lendable balances compensated for the decline. The lending environment enabled a wave of highly leveraged deals, including Paramount’s bid for Warner Bros. Discovery, showcasing the convergence of financing channels and the sector’s adaptability.
Figure 2
Additional revenue streams: Cash reinvestment and financing
Beyond direct securities lending, the industry also benefited from favourable interest rate conditions and financing activity. As US interest rates fell, cash reinvestment strategies generated US$2.29 billion in additional revenue, while financing activity produced circa US$666 million. These ancillary streams underscore the breadth of further revenue opportunities available to lenders throughout the year.
2026 Outlook: M&A, IPOs, volatility, and the AI race
Looking ahead, 2026 is set to build on the foundations laid in 2025. M&A activity and IPOs are likely to remain central drivers of securities lending revenue, as high valuations and abundant liquidity support deal flow. Volatility, fuelled by escalating geopolitical risk, will continue to create opportunities for traders and lenders. The AI race between Asia and the US promises further market surprises, with technological competition set to drive sector rotation and lending demand.
Wall Street strategists anticipate another year of double-digit earnings growth, with healthcare, industrials, and energy expected to outperform tech giants. As market participants adapt to shifting policy landscapes and technological innovation, strategic focus on risk management and global diversification will be key to capitalising on emerging opportunities.
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