The global securities finance industry generated $945 million in revenue for lenders in August 2023, according to DataLend, the market data service of fintech EquiLend. The figure represents an 8% increase from the $878 million generated in August 2022. Month-over-month, the $945 million in revenue generated for lenders in August is just a tick above the $943 million generated in July 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $241 million in revenue in August, nearly flat year-over-year.
US equity performance was top-heavy with deal-names AMC and Kenvue helping to improve revenue for lenders by 8% over 2022. The two securities, along with former Kenvue parent Johnson & Johnson, brought in $182 million in lending revenue, a sizeable 40% chunk of total US equity lending revenue in the month.
Like last month, Asia-Pacific equities were the most improved asset class year-over-year. Lender-to-broker revenue climbed 29%, driven by a 14% increase in balances and a 13% increase in borrow fees. Korean equities continued to be a highlight with 114% year-on-year growth.
Europe, Middle East and Africa (EMEA) equities continued to experience a slowdown of revenue generation with August totals down 21% month-over-month and 30% year-over-year.
Fixed income revenue was strong in August, with government debt revenue up 5% and corporate debt gaining 21% year-over-year. The July 31 issuance of the US five-year note was the 6th top-earning security, returning nearly $10 million in lending revenue.
The top five earning securities in August were AMC Entertainment Holdings (AMC), Kenvue Inc. (KVUE), Johnson & Johnson (JNJ), Nikola Corporation (NKLA) and Sirius XM Holdings (SIRI). The five securities in total generated $217 million in revenue for the month.