Monthly Securities Finance Market Review:
June 2025

We’re back with the latest analysis on the tariffs and IPOs fueling global market growth from Mike Norwood, Head of EquiLend Trading Solutions.

The following data has been measured and derived from EquiLend NGT.

June Markets Analyzed

Global markets demonstrated strength in June as easing trade tensions, resilient labor markets, and moderating inflation overcame geopolitical uncertainty and slowing economic growth to reach all time highs for the S&P 500 and Nasdaq. Securities lending markets saw continued demand even as volatility remained subdued. EquiLend’s NGT saw 3,181,790 trades executed v. $3.59T; flat month-over-month but up 26% from June 2024.

Crowning Glory for Asia Pacific Markets

While it was a positive story for markets globally through June, emerging market indices specifically were up and APAC demand was strong (+16% month-over-month). Since April, APAC markets have been bolstered by easing trade tensions due to the 90-day tariff pause on U.S. and China trade deals. With a slight extension until August 1 on the tariff pause, the pending expiration has begun to build uncertainty.

While APAC growth has been significant, the standout market so far this year has been Hong Kong with significant increases in activity and fees – DataLend data reports a +10.6% increase in fees for H1 2025. The biggest driver of this has been the increase in IPO listings with IPO activity almost 8 times that seen for the first half of 2024. With Chinese firms concerned about delisting potentials in the U.S., Hong Kong is the market of choice with 44 IPOs in the first half of the year and some predicting the number could break 100 by the end of the year. Hong Kong is on track to retake the crown of top fund-raising venue globally, and with continued IPO fuelled growth almost assured, Hong Kong is expected to remain a strong market within the Asia region for the foreseeable future.

Fixed Income Demand Cools

Outside of equities, fixed income told a sorrier story. High yield bonds posted strong returns but overall bond yields were down and fixed income borrowing demand continued to cool (-7% month-over-month). Conflicting forces in the market drove the dip as the ECB cut rates in June, but the Fed kept things constant as policymakers took differing views on balancing instability from tariffs and debt with supporting economic growth.

Looking ahead, the Fed currently maintains its projection of 2-rate cuts by year end, but with some calling for more caution and a reduction in the forecasted cuts, plus the expiration of the 90-day tariff pause, the driving forces through the start of Q2 are sure to bring further volatility for markets.

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