Global securities finance revenue reached $5.45bn in the second half of 2021, an increase of 19% YoY. While the utilization of lendable assets remained flat compared to H2 2020, the average loan balance increased by more than 30% YoY, the highest observed since the start of the pandemic. Fee spreads continued to decrease globally, with an 8% YoY drop, although Asian equities gained a substantial 49% increase in average fees, partly led by the surge of specials balances in the Taiwan and South Korean equities markets. Americas equities specials balances fell by 21% compared to H1 2021 and even with dividend reinstatement, EMEA equities specials balances dropped by 32% YoY. ETPs, ADRs and Corporate bond markets delivered the best YoY performances, driven by an increase in loan balances.
The full report is available at https://ihsmarkit.com/research-analysis/securities-finance-h2-2021-snapshot.html