Monthly Securities Finance Market Review: November 2024

EquiLend’s NGT platform saw 2,722,358 trades executed in November v. $3.06 Trillion. Trade counts were down 10% from October on fewer trading days but demonstrated 3% growth year-over-year as demand was strong for US and emerging market corporate bonds.

The US election was the driving factor as speculation on future policy being more business-friendly drove indices higher. Positive macro data and further central bank rate cuts (Fed, BoE) also contributed to positive returns and dampened volatility. This ultimately weighed on the lending market and resulted in an 8% drop in U.S. Equity trade counts from October, but this was still +4% versus November 2023. A strengthening dollar and fears of future U.S. trade policy dragged down emerging market indices and NGT saw strong demand for Taiwanese (+22%), Singaporean (+15%), and Malaysian (+18%) equities as offshore money exited and created additional short interest.

Fixed income remained in focus as favorable interest rate movements were offset by currency movements amid concerns over potential renewed inflationary pressures in 2025, with expectations now pointing towards only 3 more rate cuts next year. U.S. (+11%), APAC (+6%) and South American (+14%) bonds were the most active in the fixed income space.

Looking forward, a lot depends on the new U.S. administration, and it will be interesting to see how markets react in the first half of 2025 as more becomes clear on policy. We at EquiLend hope everyone has a happy holiday season and we will be back with a year in review in January.