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.

Q1 was another great quarter for asset valuations but securities lending revenues continued to cool.

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The first quarter of 2024 experienced soaring stock markets, resilient corporate earnings, further signs of deflation and continued expectations by investors of dovish central bank behaviour heading into the second quarter. The IPO market in the US was revived by the introduction of Reddit (RDDT) and Astera Labs (ALAB), two companies which saw their share prices jump significantly on their first day of trading.

This positive sentiment, weighed upon the securities lending activity of beneficial owners during the quarter as a lack of volatility led to a decline in both demand and revenues. This was seen across most asset classes. Despite the decline, it's important to keep this comparison in context, as 2024 follows on from two years of successive banner revenues. When comparing lender revenues to any year before 2022/23, the revenues generated fare favourably. Several substantive risks remain for investors heading into Q2 which are likely to change market dynamics significantly, producing a more volatile and dynamic securities lending market during the coming months.

On the 16th May we will be holding our bi-annual Securities Finance Forum in London. This is a great opportunity for all beneficial owners to network with their peers and exchange ideas with both our Securities Finance experts and our clients and partners. To register please click HERE.

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.

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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.