EQUITIES COMMENTARY —August 2026
Securities Finance August Snapshot 2026
August delivered another exceptionally strong month for global securities lending markets, with total revenues reaching $1.79 billion, an increase of 23% year-on-year, while average balances climbed 34% to $4.2 trillion. The growth was driven primarily by a sharp expansion in balances and utilization rather than fee appreciation, as average fees across all securities declined 9% year-on-year to 0.50%. Global lendable inventory continued to expand, rising 24% to $56.3 trillion, highlighting the scale of assets available to lenders.
Equities remained the dominant contributor to market revenues, generating $1.40 billion during the month and accounting for approximately 78% of total industry revenues. Average equity balances increased 41% year-on-year to $2.0 trillion, although average fees declined 16%, indicating that increased revenue was primarily the result of larger loan balances and higher utilization rather than increased pricing.
The standout region was once again the Asia-Pacific, where revenues surged 106% year-on-year to $659 million. Average fees increased 35% to 1.71%, while balances rose 52% and utilization climbed 19%, suggesting a combination of strong borrower demand and persistent scarcity in key names. The performance continues the trend of elevated activity across Asian markets that has characterized 2026, particularly in technology, semiconductor, and growth-oriented sectors.
In contrast, Americas equities experienced a markedly different environment. Revenues declined 39% year-on-year to $394 million despite balances increasing 48%. A sharp 59% reduction in average fees to 0.43% weighed heavily on returns, indicating that abundant supply and reduced scarcity premiums more than offset the growth in borrowing activity.
EMEA equities produced a solid month, with revenues increasing 69% year-on-year to $127 million. Average fees rose 38%, while balances increased 22%, demonstrating improving demand dynamics and a healthier fee environment than seen in the Americas.
Beyond traditional equity lending, ETPs continued to be one of the most attractive segments of the market. Revenues increased 77% to $166 million, supported by a 56% rise in fees to 1.32%. This performance reflects sustained demand for ETF-related hedging, short positioning, and market-making activity at a time when global ETF assets continue to reach new highs.
Fixed income lending also contributed meaningfully to overall market growth. Government bond revenues increased 46% to $283 million, supported by a 32% increase in balances and a 21% rise in utilization. Meanwhile, corporate bond revenues rose 18% to $104 million, as continued demand for funding, hedging, and relative-value strategies helped support activity across credit markets.
Year-to-date revenues now stand at $12.4 billion, putting 2026 on course to become one of the strongest years ever recorded for securities lending. The combination of expanding asset values, growing lendable supply, and sustained borrow demand has created a favorable backdrop for beneficial owners, particularly those with exposure to higher-fee Asian equities, ETPs, and select fixed income assets.