The third quarter of 2026 gave investors plenty to think about. The summer began on a relatively calm note, with cooling inflation and cheaper oil supporting equity markets. But by August, concerns about artificial intelligence valuations had triggered a sharp technology sell-off. Strong earnings then helped bring investors back, before September brought a fresh wave of pressure as oil prices surged, tensions in the Middle East intensified and hawkish central banks pushed global bond yields higher.
Through all these shifts, one theme remained difficult to ignore: AI.
Investors continued to debate whether the enormous amounts being invested in chips, computing power and data centres would ultimately deliver the returns needed to justify them. And those debates were visible not only in share prices, but also in another corner of the financial markets: securities lending.
“For Swissquote clients participating in the Passive Income Plan, the quarter generated a total of $1.2 million in lending income, up 69% from a year earlier.”
Several AI-related companies featured among the securities that contributed to those earnings. But before looking at the names and numbers, let’s take a step back and explain how securities lending works.
What is securities lending?
“Securities lending allows investors to make eligible securities available for borrowing in exchange for a fee.”
Through Swissquote’s Passive Income Plan, participating clients can potentially earn additional income from securities they already hold. If there is demand to borrow an eligible security in their portfolio, it may be lent out, and the client receives lending income.
Activating the plan does not mean that every eligible security in your portfolio will be borrowed.
Past lending income does not guarantee that the same security will be borrowed again or generate the same income in the future.
Lending fees vary depending on the security and current market conditions.
A widely available security may attract limited borrowing demand, while a harder-to-borrow security may command a higher lending fee.
During a loan, you remain exposed to changes in the value of your investment.
If the price rises, you benefit; if it falls, you bear the loss. Lending income is additional and does not replace investment performance.
A record quarter for global securities lending
According to S&P Global Market Intelligence data, global securities lending revenues reached $5.35 billion in the third quarter of 2026, up 20% from a year earlier. That brought revenues for the first nine months of the year to $14.16 billion.
- Asian equities were an especially important source of growth. Lending revenues in the region increased by 90% year on year, supported by activity in AI and semiconductor-related securities, as well as uncertainty around Chinese growth and the outlook for Japanese monetary policy.
- Equity lending revenues across Europe, the Middle East and Africa also rose by 61%, according to the figures used in Swissquote’s quarterly review.
The results underline how securities lending can respond to different kinds of market activity. Investors may borrow because they expect further gains, want to protect existing positions, need securities for settlement or are positioning for a decline.
“What matters for lending income is not whether the market has one shared view, but whether borrowers want access to particular securities and how much supply is available.”
That said, a busy quarter does not mean every lending fee rises. S&P Global’s data showed that average industry fees actually declined during the third quarter, even as balances and overall revenues increased. In other words, higher total lending revenues can reflect more securities being borrowed, not simply higher fees.
Swissquote clients earned $1.2 million
Against that global backdrop, Swissquote clients participating in the Passive Income Plan generated $1.2 million in lending income during the third quarter, up from approximately $709’000 in the same quarter a year earlier: an increase of around 69%.
Looking at the breakdown, French-listed securities were the largest contributor to Swissquote clients’ lending income in the third quarter, generating approximately $466’000.
Several of the names that stood out were linked to AI and technology.
- Kalray, the AI-chip designer, generated around $92’000 in aggregate client lending income.
- Median Technologies, which operates in AI-powered medical imaging, followed with approximately $69’000. Capital B contributed another $52’000.
- Swedish chipmaker Sivers Semiconductors, which was affected by the broader global chip sell-off, also featured among the top ten.
PS: These figures show where borrowing demand translated into lending income for participating Swissquote clients during the quarter. They do not mean that those companies necessarily offered the highest return to every individual holder, that the same securities will lead the rankings next quarter, nor tell us why each security was borrowed.
But the major presence of several AI-related companies among the quarter’s biggest contributors illustrates how an important market theme can be reflected in securities lending activity.
AI enthusiasm meets AI uncertainty
“The AI story creates both enthusiasm and concern across financial markets.”
On one side, investors see the potential for new products, productivity gains and rapidly growing demand for computing infrastructure. On the other, they are questioning the pace of spending, the availability of financing and how quickly that investment will translate into sustainable profits.
The result is a market in which the same company can attract strong interest from investors with very different views: a long-term investor might hold a chipmaker because they believe demand for computing power will continue to grow, whereas another market participant might borrow the same shares to hedge a technology position or express a more cautious short-term view.
Neither activity guarantees a particular outcome for the share price. But the coexistence of different views can contribute to trading and borrowing activity.
For investors who already hold eligible securities, lending offers a way to potentially earn additional income from that activity while retaining economic exposure to their investment.
Moving into the final quarter
The third quarter showed how a changing market environment can create demand for securities lending: AI valuations, interest-rate expectations and geopolitical developments all influenced investor behaviour. In some of the securities affected by those themes, borrowing demand also generated additional income for Swissquote clients participating in the Passive Income Plan.
Whether the same names remain in demand will depend on how markets evolve. A new quarter may bring different concerns, different opportunities and a different set of securities that borrowers want to access.
For more information, visit Swissquote’s Passive Income Plan page. Clients can also contact the Swissquote team with questions.
The figures in this article reflect past results and do not guarantee future income or performance. Securities lending income is variable and is not guaranteed. The content is provided for educational and marketing purposes only and does not constitute investment advice or a financial recommendation.
The content in this article is provided for educational and marketing purposes only. It does not constitute investment advice or financial recommendations.
