Global securities lending revenues hit US$1.79bn for August
03 September 2026 Global
Image: Bilal/stock.adobe.com
The month of August has delivered an 鈥渆xceptionally strong鈥� month for global securities lending markets, according to S&P Global Market Intelligence, which reports total revenues of US$1.79 billion 鈥� an increase of 23 per cent year-on-year (YoY).
Average balances for the same period climbed 34 per cent to US$4.2 trillion. The growth was driven primarily by a sharp expansion in balances and utilisation rather than fee appreciation, as average fees across all securities declined 9 per cent YoY to 0.50 per cent.
Global lendable inventory continued to expand, rising 24 per cent to US$56.3 trillion, highlighting the scale of assets available to lenders.
Year-to-date revenues now stand at US$12.4 billion, putting 2026 on course to become one of the strongest years ever recorded for securities lending.
The combination of expanding asset values, growing lendable supply, and sustained borrow demand has created a favourable backdrop for beneficial owners, particularly those with exposure to higher-fee Asian equities, exchange traded products (ETPs), and select fixed income assets.
Commenting on the month鈥檚 performance, Matt Chessum, executive director of equity and analytic products at S&P Global Market Intelligence, says: 鈥淎ugust's securities lending performance reflected many of the themes dominating global financial markets during the month: resilient risk appetite, continued enthusiasm around the AI investment cycle, and investor positioning around inflation, tariffs, and central bank policy uncertainty.
鈥淎s borrowers increasingly sought exposure, hedges, and relative-value opportunities across global markets, securities lending revenues continued to benefit from elevated trading activity and record levels of deployable inventory.鈥�
High performers in equities
Equities remained the dominant contributor to market revenues, generating US$1.40 billion during the month and accounting for approximately 78 per cent of total industry revenues.
Average equity balances increased 41 per cent YoY to US$2.0 trillion, although average fees declined 16 per cent, indicating that increased revenue was primarily the result of larger loan balances and higher utilisation rather than increased pricing.
The standout region was once again Asia Pacific, where revenues surged 106 per cent YoY to US$659 million.
Average fees increased 35 per cent to 1.71 per cent, while balances rose 52 per cent and utilisation climbed 19 per cent, suggesting a combination of strong borrower demand and persistent scarcity in key names.
The performance continues the trend of elevated activity across Asian markets that has characterised 2026, particularly in technology, semiconductor, and growth-oriented sectors.
In contrast, Americas equities experienced a markedly different environment. Revenues declined 39 per cent YoY to US$394 million despite balances increasing 48 per cent.
A sharp 59 per cent reduction in average fees to 0.43 per cent weighed heavily on returns, indicating that abundant supply and reduced scarcity premiums more than offset the growth in borrowing activity.
EMEA equities produced a solid month, with revenues increasing 69 per cent YoY to US$127 million. Average fees rose 38 per cent, while balances increased 22 per cent, demonstrating improving demand dynamics and a healthier fee environment than seen in the Americas.
Beyond traditional equity lending, ETPs continued to be one of the most attractive segments of the market.
Revenues increased 77 per cent to US$166 million, supported by a 56 per cent rise in fees to 1.32 per cent.
This performance reflects sustained demand for exchange traded fund (ETF)-related hedging, short positioning, and market-making activity at a time when global ETF assets continue to reach new highs.
The firm reports that fixed income lending also contributed meaningfully to overall market growth.
Government bond revenues increased 46 per cent to US$283 million, supported by a 32 per cent increase in balances and a 21 per cent rise in utilisation.
Meanwhile, corporate bond revenues rose 18 per cent to US$104 million, as continued demand for funding, hedging, and relative-value strategies helped support activity across credit markets.
Average balances for the same period climbed 34 per cent to US$4.2 trillion. The growth was driven primarily by a sharp expansion in balances and utilisation rather than fee appreciation, as average fees across all securities declined 9 per cent YoY to 0.50 per cent.
Global lendable inventory continued to expand, rising 24 per cent to US$56.3 trillion, highlighting the scale of assets available to lenders.
Year-to-date revenues now stand at US$12.4 billion, putting 2026 on course to become one of the strongest years ever recorded for securities lending.
The combination of expanding asset values, growing lendable supply, and sustained borrow demand has created a favourable backdrop for beneficial owners, particularly those with exposure to higher-fee Asian equities, exchange traded products (ETPs), and select fixed income assets.
Commenting on the month鈥檚 performance, Matt Chessum, executive director of equity and analytic products at S&P Global Market Intelligence, says: 鈥淎ugust's securities lending performance reflected many of the themes dominating global financial markets during the month: resilient risk appetite, continued enthusiasm around the AI investment cycle, and investor positioning around inflation, tariffs, and central bank policy uncertainty.
鈥淎s borrowers increasingly sought exposure, hedges, and relative-value opportunities across global markets, securities lending revenues continued to benefit from elevated trading activity and record levels of deployable inventory.鈥�
High performers in equities
Equities remained the dominant contributor to market revenues, generating US$1.40 billion during the month and accounting for approximately 78 per cent of total industry revenues.
Average equity balances increased 41 per cent YoY to US$2.0 trillion, although average fees declined 16 per cent, indicating that increased revenue was primarily the result of larger loan balances and higher utilisation rather than increased pricing.
The standout region was once again Asia Pacific, where revenues surged 106 per cent YoY to US$659 million.
Average fees increased 35 per cent to 1.71 per cent, while balances rose 52 per cent and utilisation climbed 19 per cent, suggesting a combination of strong borrower demand and persistent scarcity in key names.
The performance continues the trend of elevated activity across Asian markets that has characterised 2026, particularly in technology, semiconductor, and growth-oriented sectors.
In contrast, Americas equities experienced a markedly different environment. Revenues declined 39 per cent YoY to US$394 million despite balances increasing 48 per cent.
A sharp 59 per cent reduction in average fees to 0.43 per cent weighed heavily on returns, indicating that abundant supply and reduced scarcity premiums more than offset the growth in borrowing activity.
EMEA equities produced a solid month, with revenues increasing 69 per cent YoY to US$127 million. Average fees rose 38 per cent, while balances increased 22 per cent, demonstrating improving demand dynamics and a healthier fee environment than seen in the Americas.
Beyond traditional equity lending, ETPs continued to be one of the most attractive segments of the market.
Revenues increased 77 per cent to US$166 million, supported by a 56 per cent rise in fees to 1.32 per cent.
This performance reflects sustained demand for exchange traded fund (ETF)-related hedging, short positioning, and market-making activity at a time when global ETF assets continue to reach new highs.
The firm reports that fixed income lending also contributed meaningfully to overall market growth.
Government bond revenues increased 46 per cent to US$283 million, supported by a 32 per cent increase in balances and a 21 per cent rise in utilisation.
Meanwhile, corporate bond revenues rose 18 per cent to US$104 million, as continued demand for funding, hedging, and relative-value strategies helped support activity across credit markets.
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