The global securities finance industry generated $856 million in revenue for lenders in April 2025, according to EquiLend Data & Analytics. The figure represents a 1.18% increase from the $846 million generated in April 2024.
Interdealer financing activity, characterized by securities transactions between broker-dealers, generated $249 million in revenue during April 2025, representing a 3% year-over-year increase.
Global equity revenue decreased by 2% as a drop in fees of 13% offset an 11% increase in balances. Despite an increase in market volatility due to ongoing tariff negotiations and increased attention on the Federal Reserve's forward rate guidance, lending revenue for U.S. stocks continued to fall by 15%, with average fees declining 24% versus April 2024. The decline in fees suggests hedge funds may be taking a more cautious approach, with many long-short equity managers sitting on the sidelines or reducing short positions amid the unpredictable market environment.
Equity lending revenue in EMEA was roughly flat year over year as fees declined 19% compared to April 2024, while balances increased by 19%. The Netherlands led the EMEA region with a 40% year-over-year gain. The surge in revenue was driven by a substantial increase in fees of 21% and an increase in loan balances of 9%.
In APAC, South Korea and Hong Kong securities lending markets outperformed year-over-year with revenue gains of 382% and 121%, respectively. This dramatic surge in South Korea was driven by a 241% change versus the prior month, when the country lifted the ban on short selling at the end of March. Every other APAC market saw a decline in revenue month over month. The top earner in APAC was Korean equity LG Energy Solution (373220 KS), generating just over $8 million in revenue for the month for lenders. |
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Global fixed income revenue increased 12% year-over-year as government debt lending revenue improved by 13% and corporate debt by 11%. While average fees for both government and corporate debt fell by similar margins, 9% and 13% respectively, the volume of bonds on loan increased substantially by 15% and 25% year over year. The surge in fixed income lending was largely driven by increased demand for high-quality collateral amid overall market conditions and volatility. Additionally, corporate bond lending saw heightened activity in the high-yield segment as investors positioned for potential credit spread widening in anticipation of economic slowdown concerns.
The top five earning securities in the global lending markets in April were SGS SA (SGSN SE), Volvo AB (VOLVB SS), LG Energy Solution (373220 KS), Pacific Biosciences California Inc (PACB US), and Rocket Companies Inc (RKT US). The five securities in total generated $42 million in revenue for lenders in the month.
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