Securities Lending by Funds at Highest Level in Decade

Reuters is reporting that global asset managers generated $6 billion in revenue loaning out stocks and bonds during the first half of 2018. The report says securities lending by funds has reached a decade high mainly as a result of surging demand for corporate bonds and increased short selling among certain stocks like Tesla. Among other firms named, Reuters reported that BlackRock’s securities lending revenue has increased 14 percent this year to $338 million compared to the same period a year ago.