Beneficial Owner Data Dashboard Q4 '24

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The Beneficial Owner Data Dashboard provides an analysis of the securities lending market for beneficial owners using the securities finance data of S&P Global Market Intelligence.

Beneficial owners generate $9.5B in securities lending revenues in 2024

In 2024, lenders in the securities lending market generated an impressive $9.5 billion, reflecting a robust landscape, despite the slight decrease from the $10.2 billion recorded in 2023 and the $10 billion achieved in 2022. While the overall returns have shown a modest decline over the past two years, it's noteworthy that the distribution of revenues in 2024 was more diversified when compared to previous years. This shift indicates a positive trend towards a broader base of income sources, particularly from fixed income assets and more standardized lending markets such as the US and Japan.

The fourth quarter turned out to be a remarkable period for securities lending, with lenders generating $2.4 billion in revenues—$1 billion from fixed income assets and $1.4 billion from equities. The market as a whole generated $2.9 billion in during this quarter. Notably, the second half of the year proved to be slightly more lucrative than the first, providing a healthy and balanced revenue spread for lenders throughout the year.

Standout asset classes included ETFs, ADRs, and fixed income assets, which thrived as political events in the US fostered increased market confidence. This boost in confidence led to rising asset valuations, further enhancing revenue opportunities for lenders. Average fees across all equities also saw an uptick, particularly in EMEA, where corporate activities created lucrative arbitrage opportunities. Meanwhile, US equities experienced heightened demand following market shifts, with exchange-traded funds emerging as an effective tool for hedging and capitalizing on these moves.

As we look ahead to 2025, the landscape presents a mix of opportunity and uncertainty. The outlook for interest rates remains ambiguous, equity markets are beginning to respond to this recalibration as markets anticipate the inauguration of a new US administration. This transitional phase offers beneficial owners an excellent opportunity to reassess their oversight functions and ensure that their lending programs are fully operational. With the potential for volatility on the horizon, being proactive now could set the stage for continued success in the evolving market environment.

If you would like to know more about any of these themes or discuss any of the data points shown in this dashboard, please reach out to the representative in your region.

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.