The global securities lending industry maintained 2025’s momentum throughout the first quarter of 2026, generating $3.84 billion, according to EquiLend Data & Analytics, a 31% increase year-over-year. Record loan balances of $4.2 trillion were the catalyst for the rise in lending revenue, as the conflict in the Middle East, sticky inflation, and rising rates on Japanese Government Bonds added volatility to the record market highs of 2025.

The lender-to-broker segment accounted for $2.998 billion of revenue, a 31% rise on Q1 2025, while broker-to-broker lending generated $844 million, up 33% year-over-year. Global equities led the growth with a 35% increase over 2025, to $2.238 billion. Asia-Pacific (APAC) led all regions with a 49% increase in revenue, as companies tied to EVs and Chinese real estate were heavily targeted by short sellers. In North America, equity lending revenue rose by 19%, as index ETFs were heavily used to short US equities. According to Goldman Sachs, hedge funds boosted short positions in equity exchange-traded funds by 8.3% in early March. The lending revenue of EMEA equities rose by 68% year-over-year, with top regional earners, Modivo SA (fashion retailer) and 2CRSI SA (AI infrastructure firm), complementing the region’s seasonal demand.

Fixed income revenues observed a significant increase by generating $759 million, up 20% year-over-year. Government bond lending improved by 24%, as US Treasurys increased by 27% on higher balances and fees. The lending of French OATs yielded a 17% increase in revenue over Q1 2025, and Australian government bonds led APAC with a 62% increase in revenue over the same period. Corporate bond lending generated $202 million in lender-to-broker revenue, up 10% year-over-year, as a 32% increase in North American investment-grade lending balances resulted in a 30% increase in revenue. Corporate bond ETFs, while categorized as equities, had two entries, LQD and HYG, in Q1’s top five earners.

Single-stock revenue leaders for Q1 were Infosys LTD ADR (INFY US), Lucid Group Inc (LCID US), iShares Trust iBoxx Investment Grade Corp (LQD US), Nano Nuclear Energy (NNE US), and iShares Trust iBoxx High Yield Corp (HYG US), which collectively generated $128 million, or 4% of lending revenue.

Bloomberg Terminal users can subscribe to EquiLend Orbisa’s exclusive short selling and financing data by entering APPS ORBISA <GO> on the Bloomberg terminal or clicking here.