Global securities lending volumes surge in H1 2026
03 July 2026 Global
Image: Pakin/stock.adobe.com
Global securities lending revenues remained elevated in June 2026, reaching US$1.744 billion, up 20 per cent year-on-year (YoY), as stronger balances and utilisation offset a 10 per cent decline in average fees, says S&P Global Market Intelligence.
The second quarter of 2026 showcased exceptionally strong securities lending revenues, reaching US$4.999 billion, up 34 per cent YoY.
Year-to-date revenue for Q2 generated US$8.799 billion, as average balances rose 34 per cent to US$4.054 trillion and utilisation increased 9 per cent, while average fees were flat overall at 49 basis points.
Overall, for the first half of the financial year in 2026, securities lending revenues were very strong, reaching US$8.799 billion, up 33 per cent YoY.
As with June and Q2 figures, the clearest driver for the first half of 2026 was Asian equities, where revenues rose 80 per cent YoY to US$2.443 billion.
This figure for H2 2026 was supported by higher balances, stronger fees and sustained demand across AI, semiconductor, memory and technology supply-chain names, particularly in markets such as Korea, Taiwan and Japan.
Exchange traded products (ETPs) also stood out for the second half of the year, with revenues up 65 per cent YoY to US$877 million, as investors used exchange traded funds (ETFs) and leveraged products to express fast-moving views around AI momentum, market direction, rates, and geopolitical risk.
EMEA equity revenues increased 59 per cent YoY to US$962 million, helped by stronger balances and fee growth. Meanwhile the Americas equity segment remained weaker, down 6 per cent YoY, despite balances rising 36 per cent, as average fees fell 30 per cent, suggesting that deeper supply and less concentrated specials activity limited revenue capture.
Fixed income was also a major contributor, with government bond revenues up 33 per cent YoY to US$1.427 billion, supported by inflation uncertainty, elevated oil prices, geopolitical tension and shifting central bank expectations, while corporate bonds rose 13 per cent YoY, mainly reflecting higher balances rather than stronger fees.
Overall, H1 was defined by structural growth in balances, regional dispersion, and concentrated demand around AI, Asia equities, ETPs and government bonds, with geopolitical risk and rate uncertainty keeping securities lending activity elevated across asset classes.
Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence, says: 鈥淭he first half of 2026 delivered record securities lending revenues of US$8.8 billion, with Q2 generating US$5 billion, and June contributing US$1.74 billion as markets navigated an unusual combination of AI-driven equity rallies, geopolitical tensions in the Middle East, elevated energy prices, and shifting interest-rate expectations.
鈥淒emand was increasingly concentrated in Asian equities, ETFs, and government bonds, with semiconductor, AI, and technology-related themes driving borrow activity, while higher volatility and macro uncertainty supported fixed income and hedging demand.
鈥淭he result was a market where revenue growth was powered by both expanding balances and strong demand for targeted exposures, rather than broad-based fee inflation.鈥�
June鈥檚 numbers point to a market driven less by broad fee inflation and more by structural balance growth, regional dispersion, AI-led equity demand, geopolitical uncertainty, and continued repositioning across ETFs and bond markets.
Respectively, Q2 was defined by balance growth, regional dispersion, and concentrated thematic demand, with AI-led equity momentum, geopolitical uncertainty, oil-driven inflation concerns and shifting rate expectations keeping borrow demand elevated across equities, ETPs, and fixed income markets.
The second quarter of 2026 showcased exceptionally strong securities lending revenues, reaching US$4.999 billion, up 34 per cent YoY.
Year-to-date revenue for Q2 generated US$8.799 billion, as average balances rose 34 per cent to US$4.054 trillion and utilisation increased 9 per cent, while average fees were flat overall at 49 basis points.
Overall, for the first half of the financial year in 2026, securities lending revenues were very strong, reaching US$8.799 billion, up 33 per cent YoY.
As with June and Q2 figures, the clearest driver for the first half of 2026 was Asian equities, where revenues rose 80 per cent YoY to US$2.443 billion.
This figure for H2 2026 was supported by higher balances, stronger fees and sustained demand across AI, semiconductor, memory and technology supply-chain names, particularly in markets such as Korea, Taiwan and Japan.
Exchange traded products (ETPs) also stood out for the second half of the year, with revenues up 65 per cent YoY to US$877 million, as investors used exchange traded funds (ETFs) and leveraged products to express fast-moving views around AI momentum, market direction, rates, and geopolitical risk.
EMEA equity revenues increased 59 per cent YoY to US$962 million, helped by stronger balances and fee growth. Meanwhile the Americas equity segment remained weaker, down 6 per cent YoY, despite balances rising 36 per cent, as average fees fell 30 per cent, suggesting that deeper supply and less concentrated specials activity limited revenue capture.
Fixed income was also a major contributor, with government bond revenues up 33 per cent YoY to US$1.427 billion, supported by inflation uncertainty, elevated oil prices, geopolitical tension and shifting central bank expectations, while corporate bonds rose 13 per cent YoY, mainly reflecting higher balances rather than stronger fees.
Overall, H1 was defined by structural growth in balances, regional dispersion, and concentrated demand around AI, Asia equities, ETPs and government bonds, with geopolitical risk and rate uncertainty keeping securities lending activity elevated across asset classes.
Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence, says: 鈥淭he first half of 2026 delivered record securities lending revenues of US$8.8 billion, with Q2 generating US$5 billion, and June contributing US$1.74 billion as markets navigated an unusual combination of AI-driven equity rallies, geopolitical tensions in the Middle East, elevated energy prices, and shifting interest-rate expectations.
鈥淒emand was increasingly concentrated in Asian equities, ETFs, and government bonds, with semiconductor, AI, and technology-related themes driving borrow activity, while higher volatility and macro uncertainty supported fixed income and hedging demand.
鈥淭he result was a market where revenue growth was powered by both expanding balances and strong demand for targeted exposures, rather than broad-based fee inflation.鈥�
June鈥檚 numbers point to a market driven less by broad fee inflation and more by structural balance growth, regional dispersion, AI-led equity demand, geopolitical uncertainty, and continued repositioning across ETFs and bond markets.
Respectively, Q2 was defined by balance growth, regional dispersion, and concentrated thematic demand, with AI-led equity momentum, geopolitical uncertainty, oil-driven inflation concerns and shifting rate expectations keeping borrow demand elevated across equities, ETPs, and fixed income markets.
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