🌍 𝗚𝗹𝗼𝗯𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄:
• Global lendable assets reached €39.2 trillion, with €3.1 trillion in securities on loan.
• Total securities lending revenue stood at €11.3 billion, driven by US treasuries (+16%) and high-yield corporate bonds.

💸 𝗙𝗶𝘅𝗲𝗱 𝗜𝗻𝗰𝗼𝗺𝗲:
• Demand for US treasuries surged post-election as banks sought high-quality collateral.
• European sovereign bond markets faced volatility due to political instability and ECB rate cuts.

📈 𝗘𝗾𝘂𝗶𝘁𝗶𝗲𝘀:
• Global equities lending revenue fell 11% YoY, impacted by rising valuations and reduced short-selling activity.
• US equities outperformed, fueled by optimism surrounding President Trump’s victory, tax cuts, and deregulation.

🌏 𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:
• North America: US repo activity grew, with FICC’s cleared volumes hitting $2 trillion at year-end.
• Europe: Sovereign bond specials activity increased amid political uncertainty in France, Germany, and the UK.
• APAC: Taiwan led regional lending revenues, while Hong Kong and South Korea faced regulatory challenges.
• Middle East: Saudi Arabia remains a key growth market, with elevated lending fees due to strong demand.

📢 𝗟𝗼𝗼𝗸𝗶𝗻𝗴 𝗔𝗵𝗲𝗮𝗱 𝘁𝗼 𝟮𝟬𝟮𝟱:
• US tariffs and deregulation could drive volatility, while narrowing cross-currency basis swaps may limit USD funding opportunities.
• Client-directed trading is expected to grow, with asset owners increasingly comfortable with diverse collateral.
• Accelerated T+1 settlement in Europe and the UK by 2027 will require industry-wide collaboration.

👥 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗼𝗿𝘀:
This report features insights from Jon Lacey and Joseph Gillingwater, with additional commentary from Northern Trust.

📥 Download the full report to gain deeper insights into these trends and prepare for the opportunities ahead: link in the first comment

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