Securities Finance April 2022 Snapshot

$1.058b in April securities finance revenue

  • April revenues climbed by 32% YoY
  • ETP and Corporate bond borrow fees increase on last month
  • Slump in ADR borrow demand continues
  • European markets boosted by dividend yields

Global securities finance revenues totaled $1.058b in April, a
32% YoY rise. The YoY increase was primarily the result of
equities, with all regions showing YoY growth. Average daily global
revenues decreased 2% MoM compared with March. American equities
and global ETPs are notable in revenue growth driven by both YoY
increase in balances and fees. In this note, we will review the
drivers of April revenue.

APAC Equity

APAC Equity Finance revenues totaled $174m in April, up 22% YoY
but down 15% from the YTD high in March. Last month the average
value on loan was $275bn but reduced borrow demand in April saw
loan balances drop to $220m. Japan was on top in April, generating
$47m of equity finance revenue but Taiwan retains 2nd spot
delivering $46m, up 76% YoY. South Korea remains buoyant, producing
$30m and up 239% YoY, with Hong Kong also generating $30m but down
19% YoY.

The top revenue name is Lg Energy Solution for the second month
in a row, delivering $5m in April. Taiwan stocks Au Optronics Corp
and Acer Inc generated $1.93m and $1.92m respectively. Cost
pressures and lockdown restrictions have driven borrow demand for
bottled water maker Nongfu Spring, generating $1.56m in equity
finance revenue and entering the APAC top 5.


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