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8 Securities Lending Market Report | H1 2025 9

Introduction

It has been an eventful year for financial markets which have had to absorb material
events on the macroeconomic, geopolitical front with changes in the global world
order, ever evolving political alliances, trade tensions as well as mounting debt burdens
contributing to volatility. It’s important to note that financial markets have held firm
Securities Lending themselves and express views on events as they unfold.
in the face of this volatility presenting favourable conditions for investors to position

This has been visible in our securities lending market with increased returns for lenders
with more stocks trading special, as well as increased activity in the IPO market -
Coreweave was one such example.
Biannual Market Review We also saw markets such as South Korea return to the fold with the lifting of the short-

sale ban, as well as the growth of the Saudi Arabian markets with increasing number of
participants going live or demonstrating interest in the market.
Turning to fixed income, the large expansion in fiscal policies across the Eurozone, UK
and the US contributed to plentiful supply resulting in few specials and increased funding
H1 2025 needs in the repo market. We continue to see dealers looking for regulatory optimisation
across balance sheet, capital and liquidity consumption with various structures such as
Clearing, pledge, pledge back, haircuts, as well as Net Stable Funding Ratio being key
drivers of funding spreads and liquidity.
Whilst fixed income spreads continue to remain benign, this could change as market
participants continue to digest the increased issuance from governments and continuously
assess the funding plans and fiscal sustainability of countries and corporates alike.
Zorawar Singh
Global Head of Agency Securities Lending

Contributors
Afshan Jabeen Kaitlyn Choo
US Trading, Agency Securities Lending APAC Trading, Agency Securities Lending
Claudio Lorenzini Mark Butler
EMEA Trading, Agency Securities Lending EMEA Trading, Repo Desk (London)
Herbert Schmoelzer Thibault Kopp
US Trading, Agency Securities Lending US Trading, Agency Securities Lending
Joe Matthews
EMEA Trading, Agency Securities Lending