Securities Finance 2024 Q1 Review

A stronger than expected global economy, a continuation of AI exuberance and dovish tones from central bankers helped to push global equity markets to record highs during the first quarter of the year.  Market volatility remained low as a result which impacted securities lending.  As inflation continued to recede and future moves in interest rates became easier to predict, lending fees across both government and corporate bonds declined, leading to lower securities lending revenues across fixed income assets.  APAC equity markets experienced a strong degree of divergence as short sale bans continued to weigh on lending activity.  The knock-on effects of a weaker than expected Chinese economy also impacted demand across the region. Short interest across EMEA equities tumbled to its lowest level seen for a decade and the majority of securities lending opportunities continued to be present across US equities.

With changes to interest rates expected during the second quarter of the year, we welcome Mike Brooks, Vice President, Head of the U.S. Investment Management and Fixed Income Lending at eSecLending who will help us to understand what this means for securities lending activity during the remainder of 2024.  As the majority of lending revenues continue to be derived from US equities, we will also be welcoming Jim Maroney Managing Director, Head of Global Equities and Corporate Bond Trading from eSecLending, who will be discussing expectations for the continuation of this trend.