NEW YORK, January 4, 2022 / PRNewswire / – The global securities lending industry has generated $ 9.28 billion revenue for lenders in 2021, according to DataLend, the fintech market data division EquiLend.
This figure represents an increase of 21.2% over the $ 7.66 billion generated for lenders in 2020 and an increase of 7.2% over the $ 8.66 billion in 2019. Last year was the highest year for loan income since 2018, which had just under 10 billion dollars In income.
Global broker-to-brokerage activity, where brokers lend and borrow securities from each other, totaled a $ 2.82 billion of revenue in 2021, down 1.7% year-on-year.
Income from securities lending is calculated as the amount paid by borrowers, usually brokers on behalf of their hedge fund clients, to temporarily borrow stocks and fixed income securities from long-standing holders of those assets, called beneficial owners.
According to DataLend, the increase in lender-to-brokerage income was recorded in stock markets around the world: Americas (+ 22.3%), EMEA (+ 1%) and APAC (+ 29.7%). Fixed income markets also saw notable increases with loan income from corporate debt up 36.4% and government debt up 27.9% from 2020.
The top five income-generating securities in the global securities lending markets in 2021 were Robinhood Markets (HOOD), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), Blink Charging (BLNK), VMware (VMW) and Visa (V ), which together generated $ 413 million of loan income in 2021.
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DataLend is the equity finance market data division of EquiLend. DataLend tracks daily market movements and provides analysis on over 61,000 unique stocks in the $ 2.7 trillion financial securities market. www.datalend.com
EquiLend is a global financial technology company providing trading, post-trade, market data, regulatory and clearing services for the securities lending, guarantees and swaps industries. www.equilend.com