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Securities Lending Market Report | H2 2025
>>> Fixed Income
The US fixed income lending market in H2 2025 remained stable, functional, defined by persistent structural demand, driven Fig 10 - North American Government Bonds vs Non-Cash
by settlement efficiency, balance sheet optimization and regulatory capital management, reflected in the following graphs, North American Government Bond Market
Figure 9 North American Government Bonds vs Non-Cash and Figure 10 North American Government Bond Market where
balances increase around year-end/beginning of the year.
3.30 1.10
Revenue outcomes were modest but consistent, reinforcing The continued expansion of central clearing for treasuries was
fixed income lending’s role as a stable, low-volatility one of the most important structural developments influencing 3.20 1.05
component of securities finance programs. US Treasuries for H2 activity. While clearing enhanced transparency and 3.10 1.00
continued to dominate fixed income lending activity by reduced counterparty risk, it also increased demand for high- 3.00 0.95
volume, and specific issues repeatedly traded special, such quality collateral. Pricing in fixed income lending remained Lendable Value (Trillions €) On-Loan Value (Trillions €)
as on-the-run treasuries & cheapest-to-deliver bonds into tightly linked to repo benchmarks. GC trades generated 2.90 0.90
futures. minimal spreads, while specials provided brief revenue uplift 2.80 0.85
during H2 2025.
Agency securities & mortgage-backed securities provided 2.70 0.80
a stable source of lendable inventory. Prepayment and US fixed income securities lending in H2 2025 fulfilled its core Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025
conservative risk management limited utilization in certain role as market infrastructure rather than a profit engine. Stable
segments, while haircuts remained elevated. Corporate demand, conservative risk management and improved clearing Group Lendable On-Loan Balance
bond lending was highly selective, and activity concentrated mechanism ensured continuity, predictability and resilience.
in specific issues which were tied to index rebalancing
credit hedging or capital structure capital, however liquidity
constraints and settlement risk limited broader participation.
Fig 9 - North American Government Bonds vs Non-Cash
North American Government Bonds Cash vs Non-Cash
400.00 760.00
740.00
On-Loan Cash (Billions €) 250.00 700.00 On-Loan vs Non-Cash (Billions €) Introducing the
350.00
720.00
300.00
680.00
660.00
200.00
640.00
ISLA Securities Lending
150.00
620.00
600.00
100.00
50.00
560.00
540.00
0.00 580.00
Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025 & Borrowing Hub
Group Balance vs Cash Group Balance vs Non Cash
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