Global securities finance revenues rise 13% YoY for November
06 December 2022 US
Image: Pixelbliss/stock.adobe.com
Global securities finance revenues have increased 13 per cent year-on-year (YoY) to US$1.005 billion for November, according to S&P Global Market Intelligence.
Although fees increased 19 per cent YoY and utilisation grew 9 per cent YoY, the value of on-loan balances declined 6 per cent relative to November 2021. The decrease comes as no surprise, the firm says, given the fall in market valuations over 2022.
Revenues for exchange-trade products (ETPs) increased 15 per cent YoY to US$60 million. However, month-on-month growth declined by 14 per cent, falling across both Europe (-4 per cent) and the Americas (-26 per cent).
Fixed income lending performed well throughout November 2022. Lending revenues for government bonds continued to produce stronger revenues YoY, with an increase of 20 per cent to US$161 million.
According to S&P Global Market Intelligence, corporate bonds revenues were the highest for any month so far during 2022, increasing 7 per cent month-on-month to US$91.5 million.
The firm says 鈥渉aving grown every month since the start of the year, 2022 is likely to be the best year for corporate bond revenues ever recorded鈥�.
Average fees for ETPs increased 17 per cent YoY to 77bps and for corporate bonds, average fees climbed 73 per cent to 44bps.
Average fees for government bonds remained at a year high of 18bps, following the exact same figures as the two-month previous. However, average fees for this asset class showed an increase of 39 per cent YoY.
For American Depositary Receipts (ADR), average fees for November were 101bps, a 38 per cent YoY increase. Despite this growth year-on-year, fees have fallen month-on-month since their peak in August 2022 at 168bps.
ADRs generated US$23 million in securities finance revenues during the month of November, a 6 per cent decrease from November 2021.
Revenue from EMEA equities rose 27 per cent YoY to US$135 million in November, the third-highest monthly revenue figure recorded during 2022.
Americas equities revenues also increased YoY climbing 11 per cent to US$351 million. Asia equities saw a 13 per cent YoY decline, however, to US$164 million.
Although fees increased 19 per cent YoY and utilisation grew 9 per cent YoY, the value of on-loan balances declined 6 per cent relative to November 2021. The decrease comes as no surprise, the firm says, given the fall in market valuations over 2022.
Revenues for exchange-trade products (ETPs) increased 15 per cent YoY to US$60 million. However, month-on-month growth declined by 14 per cent, falling across both Europe (-4 per cent) and the Americas (-26 per cent).
Fixed income lending performed well throughout November 2022. Lending revenues for government bonds continued to produce stronger revenues YoY, with an increase of 20 per cent to US$161 million.
According to S&P Global Market Intelligence, corporate bonds revenues were the highest for any month so far during 2022, increasing 7 per cent month-on-month to US$91.5 million.
The firm says 鈥渉aving grown every month since the start of the year, 2022 is likely to be the best year for corporate bond revenues ever recorded鈥�.
Average fees for ETPs increased 17 per cent YoY to 77bps and for corporate bonds, average fees climbed 73 per cent to 44bps.
Average fees for government bonds remained at a year high of 18bps, following the exact same figures as the two-month previous. However, average fees for this asset class showed an increase of 39 per cent YoY.
For American Depositary Receipts (ADR), average fees for November were 101bps, a 38 per cent YoY increase. Despite this growth year-on-year, fees have fallen month-on-month since their peak in August 2022 at 168bps.
ADRs generated US$23 million in securities finance revenues during the month of November, a 6 per cent decrease from November 2021.
Revenue from EMEA equities rose 27 per cent YoY to US$135 million in November, the third-highest monthly revenue figure recorded during 2022.
Americas equities revenues also increased YoY climbing 11 per cent to US$351 million. Asia equities saw a 13 per cent YoY decline, however, to US$164 million.
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