Data & Insights January, 2025 14 min read

Inside the Financing Markets: The Purple Issue 17

ISSUE 17 | January 2025

Equilend Data & Analytics 2024 in review

The Initial Impact of the 2024 U.S. Election on Securities Lending
With two months now elapsed since the 2024 U.S. presidential election, policy shifts planned by the incoming administration have begun to come into focus, and broader financial markets have reacted in kind.
Learn More: The Initial Impact of the 2024 U.S. Election on Securities Lending
Impact of Rate Cuts on Securities Lending
After aggressively hiking interest rates to a 10-year high of 5.5%, the U.S. Federal Reserve started 2024 in a holding-pattern of sorts. Inflation measures were cooling, but the American consumer was still feeling the pain of high prices.
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Revenue Review: Top Securities Lending Earners in 2024
As U.S. equity markets rallied in 2024, securities lending revenue for U.S. equities faced significant challenges, with Q4 revenue down 7% year-over-year (YoY), contributing to a total annual decline of 17%. A 22% drop in fees drove the decrease and offset a 5% increase in balances, which was driven by increased valuations.
Learn More: Revenue Review: Top Securities Lending Earners in 2024
APAC 2024 Performance
While global securities lending revenue faced headwinds in 2024, the Asia-Pacific (APAC) region showed resilience, experiencing a comparatively modest 1.8% year-over-year (YoY) decline to $2.1 billion. The majority of revenue was generated by equities, contributing $2 billion, representing a 0.3% YoY decline.
Learn More: APAC 2024 Performance