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8 Securities Lending Market Report | H2 2024 9

Introduction

In a continuation of events in the first six months of 2024, the latter half
saw ongoing uncertainty, both geopolitically and in the macro-economic
environment. However, fixed income activity remained healthy in
securities lending markets, with assets sought for numerous purposes.
Securities Lending Stubborn inflation in much of the world prolonged the higher-for-longer

interest rate cycle narrative, while political change prompted general yield
curve volatility, notably in Europe and the United States. According to
Datalend, revenue from lending global sovereign bonds increased 8% versus
2023, driven by US treasuries which enjoyed a 16% increase in lending
Biannual Market Review revenue during 2024 from one year prior. This was somewhat offset by
corporate bond lending, with earnings declining 21%, according to the data
provider. This followed a stellar 2023 and was driven by a 29% decrease in
lending fees during 2024.
In contrast to the fixed income market, equities lending flows were reduced
with investor balances heavily skewed to the long side. General Collateral
H2 2024 (GC) and hard to borrow volumes have been impacted as a result, with
revenues falling year on year, and with increasing supply from institutional
investors also driving utilisation levels lower. US equities were the standout
performer over the period and closed out double digit gains for 2024.
Dovish interest rate sentiment and optimism surrounding Donald Trump’s
victory in the US presidential election drove market gains. President Trump’s
policy programme is expected to elevate growth, lower taxes and cut
regulation, which has fuelled risk assets and US equity outperformance.

Introduction & Outlook

Jonathan Lacey
Global Head of Equity Trading, Securities Finance
Joseph Gillingwater
Global Head of Fixed Income Trading, Securities Finance