A Strong Start to 2026 Doesn’t Mean “Easy Conditions”
January numbers look impressive: global securities lending revenue reportedly hit $1.24B (+32% YoY) with balances staying above $4T.
The trap is assuming this automatically means “more supply” or “calmer borrow.” In reality, strong headline revenues are often a mix of volatility, fee dispersion, and concentrated specials. When markets swing, the distribution matters more than the total.
If you’re watching the market, don’t just ask “revenues up?” Ask where they came from: which segments, which regions, and whether it’s broad-based or a handful of names doing all the work.
