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The Beneficial Owner Data Dashboard provides an analysis of the securities lending market for beneficial owners using the securities finance data of S&P Global Market Intelligence.

2023, another banner year for Securities Lending Market revenues

2023 followed in the footsteps of 2022, generating banner securities lending revenues for the market. The strongest revenues were seen throughout the first half of the year as economic uncertainty prevailed against a backdrop of slowing interest rate hikes and on-going hesitation from central banks to engineer a soft landing. Revenues were dominated by fixed income assets as market volatility translated into moves in yields and demand for short-dated government bonds, and US equity specials.

2023 was also banner year for specials revenues. The US dominated the top equity revenue table throughout the year. A handful of stocks generated the lion's share of the revenues in the equity markets as mega special AMC Entertainment Inc (AMC) generated over $661M in market revenues. The large cap nature of the stock led to ample supply of shares for borrowers to engage in the conversion trade (APE line converted to the AMC line), leading to near record revenues. The strength of the returns generated from specials and the size of their contribution to overall market revenues means that the dispersion of earnings across beneficial owners has been significant.

During the year, and more specifically, after the first bankruptcies of financial institutions since the financial crisis in Q1, several common themes took hold. Risk management, collateral management and performance all dominated our beneficial owner discussions. We continue to support the beneficial owner community in analyzing and evaluating securities lending programs and we continue to develop a range of tools to help asset owners optimize their programs and enhance their internal processes. If you would like to know more about any of these themes or discuss any of the data points shown in this dashboard, please reach out to the representative in your region.

To understand how beneficial owners performed during 2023, click on the button above to download the latest report. This will be available on a quarterly basis from Q1 2024.

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.