Insight
January 2026
The Purple Issue 21
2025 Year in Review: What Drove a Record-Breaking Year for Securities Lending Revenue?
The curtain has closed on 2025 — and what a year it was for global securities finance. The industry didn’t just outperform expectations; it shattered them. Total revenue surged to an unprecedented $15.3 billion, with lender-to-broker activity alone contributing $11.72 billion. That’s a 22% jump from 2024 and a 9% leap beyond the previous all-time high set in 2023.
A year defined by political turbulence, an AI powered equity boom and shifting global trade dynamics created the perfect conditions for heightened lending demand. From Washington to Hong Kong, volatility and innovation combined to produce one of the most active lending environments in modern history.
North American Equities: The Epicenter of 2025’s Lending Surge
North American equities delivered a strong year, adding $893 million in lending revenue from the year prior and accounting for 43% of global growth. A 20% increase in loan balances, driven by rising market valuations amid an AI and technology boom, was the main catalyst for the rise in revenue. Altogether, U.S. and Canadian equities combined generated $5 billion.
Technology dominated activity. CoreWeave (CRWV) became the standout name globally, producing $467 million in lending revenue after its IPO — the largest single-security contribution of the year. IT stocks in total generated $1.3 billion, a 223% increase, underscoring how intensely the AI trade shaped borrowing demand.
Corporate events added further momentum. The Paramount Global (PARA) merger with Skydance Media triggered significant merger arbitrage positioning, with PARA generating $121 million before the deal completed in August. This activity helped push second-half revenue $850 million higher than in the first half, reinforcing North America’s revenue dominance in 2025.
EMEA Equities: Political Uncertainty Drives Opportunity
EMEA equity lending revenue rose 14.6% to $1.1 billion, driven by a 27% jump in loan balances. The U.K. led regional growth, as political uncertainty and energy-sector volatility boosted activity. U.K. revenues increased 47% to $168 million, with SSE and National Grid among the most borrowed names. Industrial stocks were the top-earning sector in EMEA at $196 million, followed closely by financials at $190 million.
APAC Equities: The Big Mover of 2025
APAC remained one of the strongest global engines of securities lending activity. The region returned $2.87 billion, up 42% year-on-year, contributing 42% of global revenue growth. AI-linked names drove much of the demand as a result of the region’s dominance in the semiconductor industry.
Hong Kong led earnings at a country-level with $760 million (+123%), while South Korea surged to $404 million (+440%) after the short-selling ban was lifted in March. Sector trends mirrored global patterns: IT stocks earned $758 million and industrials nearly doubled to $621 million.
Global ETFs: A Growing Force in Securities Lending
ETF lending revenue reached $526 million, up 42%, as ETFs continued to offer enhanced exposure to otherwise difficult-to-access markets. Fees rose 15%, and balances increased 24%, indicating broad-based demand.
The U.S. ETF market delivered $433 million (+40%), while EMEA grew 77% to $69 million.
The strongest performer was HYG, earning $32.8 million, driven by increased hedging as corporate credit risk expectations shifted. CNYA led outside the U.S. at $20.5 million, benefiting from heightened interest in Chinese A-shares during a year of ongoing U.S.–China tariff tensions.
North America Fixed Income: Steady Strength in a Volatile Year
North American fixed income returned $1.71 billion, a 7% increase, representing nearly two-thirds of global fixed income lending revenue. U.S. government bonds generated $1.25 billion, while corporate bonds added $463 million. Growth in loan balances offset small declines in average fees.
Demand for Treasuries strengthened as political uncertainty and shifting expectations around Federal Reserve policy prompted more bearish positioning. Corporate activity centred on credits under pressure: issues from MPT Operating Partnership, Celanese US Holdings and Cable One saw increased lending interest due to rating concerns, financial stress or market volatility. Celanese was particularly notable following its credit downgrade.
EMEA Fixed Income: Gilt Volatility Steals the Spotlight
EMEA fixed income revenue climbed 7.1% to $812 million, supported by an 18% increase in balances. Government debt generated $570 million, with corporate bonds contributing $242 million. France and the U.K. remained the region’s strongest markets.
U.K. gilt volatility was a defining feature of the year, driven by fiscal concerns and elevated borrowing needs. Rising yields increased demand to borrow, and the UK Treasury 0.125% Gilt 30/01/26 became the highest-earning fixed income security globally at $13.9 million.
Looking Ahead to 2026
As 2026 begins, markets face a challenging mix of possible AI-driven overvaluation, shifting monetary policy paths and persistent geopolitical tensions. With late-2025 marking a sharp shift in positioning and sentiment, the months ahead will test market resilience.
EquiLend Data & Analytics will continue delivering the industry’s most comprehensive and timely securities finance insights.
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