Securities Finance 2023 Q4 Review

2023 was a significant year for global financial markets. The post COVID recovery led to one of the quickest and most aggressive interest rate tightening cycles in history, which impacted all corners of financial markets, including securities finance. 2023 has proved to be the year of fixed income lending as revenues and average fees have soared. A strong specials market in the United States and a dynamic securities lending market across the APAC region also helped to generate near record revenues for lenders. Despite a vibrant market environment, not all lenders have been able to benefit to the same degree however, as demand has remained concentrated in either specific assets or asset classes.

As we review both 2023 and Q4, as well as look towards what 2024 may bring, to help us in our analysis, we will be welcoming Tom Kehoe, Managing Director, Global Head of Research and Communications at AIMA (Alternative Investment Management Association). Tom will be discussing Hedge Fund performance throughout 2023, reviewing the results of AIMA’s most recent Hedge Fund Confidence Index, and running us through what regulations have the potential to impact Hedge Fund demand during 2024.

Highlights:

• 2023 produces near record level of returns but not for all market participants
• Fixed income assets benefit from interest rate volatility
• APAC equities awaken and prove a dynamic market for lenders
• US equity specials were the story of the year