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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.

Q3 2024 revenue was dominated by specials and fixed income.

Throughout Q3 2024, the market experienced several notable developments, including the first decline in interest rates seen for many years across Europe and the US, the ongoing prominence of Big Tech and an increase in geopolitical risk, particularly across the Middle East. Global stock markets performed robustly, with only a transient dip seen in August, attributed to weaker-than-expected US economic data and a larger-than-anticipated interest rate hike by the Bank of Japan.

Beneficial owners experienced an increase in asset valuations during the quarter as lendable Inventory surpassed $40T for the first time in the market's history. This subsequently led to a lower return to lendable when compared to previous Q3 periods and a slightly disappointing quarter, as overall returns were unable to match those of the previous years, after having witnessed some of the best quarterly returns in history. The US and Asian specials market continued to provide the lion's share of revenues, particularly for asset managers, and whilst this corner of the market can prove to be very profitable for some, not all lenders would have benefitted to the same extent.

Heading into the final quarter of the year, we believe that government bond lending, particularly US Treasuries, will continue to grow as uncertainty regarding the timing and size of any future interest rate cuts continues to play out. If you haven't already done so, it may be a great time to trial our Repo Data Analytics product as pricing between the securities finance and Repo markets continues to provide some interesting opportunities for lenders. We also believe that ETFs will play a growing role as thematic trades are executed in the run up to the Presidential elections in the US.

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.

S&P Global provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.

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.