Unlock Hidden Income in Your Portfolio June 24, 2026

Unlock Hidden Income in Your Portfolio

Did you know that the shares sitting in your portfolio can generate additional income—without you needing to sell them?

Securities lending gives investors the opportunity to earn extra returns on their existing investments by lending their shares to other market participants for a fee. It is a widely used practice in global financial markets and can help you maximise the value of your portfolio.


What Is Securities Lending?

Securities lending allows you to temporarily lend your shares to borrowers (such as institutional investors or traders) who require them for trading or investment purposes.

In return, you receive:

  • Lending income – Earn a fee while your shares are on loan
  • Collateral protection – Your loan is backed by collateral, which is monitored daily
  • Continued market exposure – You still benefit from price movements of your shares

This means your portfolio continues to work for you—even when you are not actively trading.


Why Do Borrowers Need Your Shares?

Borrowing demand comes from various market activities, including:

  • Short selling – When investors expect prices to fall
  • Market making – To provide liquidity in the market
  • Hedging strategies – To manage risk across investment positions

These activities are essential to keeping markets efficient and liquid, while creating opportunities for investors like you to earn additional income.


Interesting Facts About Securities Lending

  • Not all stocks earn the same lending returns
  • Some stocks are in higher demand and can generate significantly higher fees
  • Demand can fluctuate depending on market trends, news, or corporate events
  • Stocks with limited supply or high short interest are often more valuable to lend


In the market, stocks are often classified as:

  • General Collateral (GC) – Commonly available stocks with steady but lower returns
  • “Hot” Stocks (Specials) – Rare or high-demand stocks that can generate premium lending income


Opportunity: High-Demand (“Hot”) Stocks

At times, certain stocks experience strong borrowing demand due to:

  • Corporate actions, such as mergers or index changes
  • Market speculation or short interest
  • Tight supply in the market


When your holdings fall into this category, you may enjoy higher lending income without making any change to your investment strategy.

Why Consider Securities Lending?

  • Generate passive income from your existing holdings
  • Enhance overall portfolio yield
  • No need to actively manage trades
  • Benefit from opportunities when demand spikes


Getting Started

Securities lending can be seamlessly integrated into your account. With your consent, eligible shares can be made available for lending, and any income earned will be credited to your account on a monthly basis. Simply open SBL account on poems.com.sg

Alternatively, you may reach out to our team at sbl@phillip.com.sg for a personalised review and guidance on how to maximise your lending opportunities.

 

Disclaimer

These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.

Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance.

Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

About the author

Securities Lending Desk

The Securities Borrowing and Lending (SBL) Desk is a specialized team dedicated to providing financing and liquidity solutions across key Asian markets as well as US markets, supporting both institutional and retail clients. The team enables portfolio yield enhancement through lending and facilitates short-selling access via borrowing opportunities for selected markets tailored to diverse investment strategies.

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