13 March 2017
London
Reporter: Drew Nicol

Securities lending industry breaks through $2trn mark


Global on-loan securities are worth more than $2 trillion for the first time since 2013, according to market data provider DataLend.

The latest valuation saw on-loan securities rise by more than $180 billion from March of last year.

The amount of securities available for borrowing also broke DataLend’s previous record to now sit at more than $16.4 trillion, up $2.75 trillion in 2016.

More than 45,000 unique securities are on-loan worldwide.

The achievement marks new heights for the securities lending industry, which has seen a steady rise in on-loan value over the past 12 months.

The International Securities Lending Association’s latest industry report put on-loan securities at €1.9 trillion as of 30 June 2016—a 4 percent increase on the previous six months.

According to DataLend, lenders earned $9.16 billion in 2016, with North American lenders claiming the lion’s share of $4.67 billion.

Europe followed on $2.64 billion, with the Asia Pacific making up $1.67 billion and the rest of the world accounting for the final $182 million.

The use of cash collateral fell by 6.4 percent over the same period to sit at 39.48 percent, likely due to persistent low and negative interest rates.

Speaking on the latest data, Chris Benedict, director at DataLend, said: “The recent rise to more than $2 trillion on loan in the securities lending industry is likely due to growth in the global capital markets along with the asset values of the securities on loan and in inventory."

"A major shift in the capital markets in the future would likely have an impact on loan and inventory values, either positive or negative.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Pilot repo survey reveals Japan as regional activity centre
26 September 2017 | London | Reporter: Jenna Lomax
The survey, which was the first of its kind carried out by ICMA and ASIFMA, found the majority of repo collateral was made up of Japanese government bonds
Shadow banking will not be banned, confirms IMF
26 September 2017 | Helsinki | Reporter: Jenna Lomax
The IMF, along with the FSB and other regulatory bodies, have no desire to shut down the alternative financing industry but that some aspects of the market’s risk features must be managed
Hedge funds see record-breaking returns, says eVestment
26 September 2017 | Atlanta | Reporter: Jenna Lomax
Investors added an estimated $13.4 billion to hedge funds in August, bringing in more money than was spent, which lead total AUM to $3.2 trillion
Broadridge expands sec finance project team
25 September 2017 | London | Reporter: Drew Nicol
Broadridge has recruited Martin Walker as head of product management for securities finance and collateral management
US Volcker Rule not fit for purpose, says SIFMA
22 September 2017 | New York | Reporter: Drew Nicol
The US Volcker Rule is too broad, excessively complex, and uniquely prescriptive, according to the Securities Industry and Financial Markets Association
Pension fund mandate for BNP Paribas
22 September 2017 | London | Reporter: Drew Nicol
BNP Paribas has been appointed to provide global custody for £3 billion in pension fund assets for the West Sussex Pension Fund
Pirum joins South African securities lending association
21 September 2017 | Johannesburg | Reporter: Drew Nicol
Pirum Systems has joined the South African Securities Lending Association