March revenues continue to impress

• Monthly revenues reach $1.47B as Q1 revenues hit $3.8B
• Asian and EMEA equity specials grow 55% and 95% respectively YoY
• Balances continue to grow despite a decline in asset valuations
• Government bond Q1 revenues reach $680M

In March, securities lending revenues hit $1.47 billion, marking a 36% year-on-year increase. This growth was fuelled by heightened market volatility, driven by increased geopolitical risk, shifting interest rate expectations and a rise in hedging activity.  Average fees increased across all securities as a result, increasing significantly from those seen throughout the first two months of the quarter.  Average fees reached 44bps during the month.  Balances remained significantly higher on a year-on-year basis, marking one of the highest figures seen for many months.

Equity activity remained strong throughout the period with all equities generating $1.118billion in revenues, which represents a 38% increase year-on-year and the highest monthly total seen since October 2025.  A significant increase in balances (+$110.2billion), despite falling market valuations, coupled with a 12bps increase in average fees when compared with February, contributed to the improved performance.  Whilst Americas equity revenues increased 6% year-over-year to $333million, strong growth was seen across European and Asian markets with revenues growing 60% and 53% respectively when compared with March 2025.  EMEA equities posted a 95% increase in specials revenues which helped to drive performance higher. Across Asia, activity was strong across the majority of markets with a number of common themes such as commodities, supply chain dislocation and economic resilience leading to resilient demand.

ETFs and ADRs continued to produce impressive returns for lenders throughout the month as hedging and directional opportunities increased further.  Revenues continued to grow on a year-over-year basis with leveraged, corporate bond ETFs and technology focussed ADRs experiencing strong demand.

In the fixed income markets government bonds posted one of their strongest months of revenues for many years. Government bonds benefited from an increase in inflationary news flow which impacted yields across the curve.  This led to an increase in both average fees and balances.  Corporate bond spreads started to widen throughout the month as positioning was impacted by the conflict in the Middle East, leading the asset class to post its highest monthly revenues of the year so far.  

In Q1 2026, markets experienced a notable shift in investor behaviour, leading to a year-on-year increase in securities lending revenues as market volatility intensified. Quarterly securities lending revenues reached $3.801billion, an increase of 32% when compared year-over-year. All asset classes generated strong returns with Asian equities, government bonds and ETFs seeing some of the highest quarterly revenues generated for many years.

Volatility defined the financial markets in the first quarter of 2026, with all major asset classes, including precious metals, equities, bonds, and commodities, affected by geopolitical developments in the Middle East, evolving perspectives on AI-driven investments, shifting private market valuations, and the ongoing impact of new technologies on corporate performance. Against this complex backdrop, securities finance markets experienced another active and eventful period as investors adjusted portfolios to manage heightened uncertainty and fluctuating valuations.

We invite you to join our upcoming webinar that will review the securities lending market performance during Q1 2026. Together, we will examine whether the strong revenue trends observed in 2025 have continued into the new year and discuss the key factors influencing market dynamics.

We will also be joined by Mark Klein, Head of EAP Business Development, who will be sharing insights on client trends observed throughout the quarter as well as several notable product enhancements that we have planned for release in 2026.

Don’t miss your chance to stay ahead of the curve, register now and be part of the conversation that’s shaping the future of securities finance!

REGISTER HERE