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Sounds like repo? At some places, repo can be pretty badass (i.e. they use their repo mandate to act almost like a prop desk), while at others it can be a lame PB-type desk.
its fo
It's almost surely a front-office desk. How do you think anyone actually shorts stocks? They borrow it from a bank, and then sell it in the market. Without stock borrowing and lending (sometimes called 'equity finance'), there would be no equity L/S funds, and it would be impossible to make money (directly) on a downturn in the stock market.
It's a very important function within the bank.
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hm thx interesting info. yea i was wondering if it was "glorified BO work" as brown bateman says but the rest of you seem to think it's pretty solid ...
stock loan trading desk (Originally Posted: 05/29/2013)
I'm dong a first yr rotational program in S&T at a BB and would like to know more about stock loan trading BC this will be my first assignment. do they have P/L? what are the exit opps? I know they lend out securities posted as collateral by PB clients and collect fees to facilitate short sale. thanks for info!
Bump* Anyone?
I don't know what the other are talking about, but traditional securities lending as its known sits in Prime Brokerage and it viewed similarly to other areas of PB. Not alot of anlaytics and not anyway comparable to real trading.
Stock Loan Sales Desk (Originally Posted: 07/23/2010)
Hey guys,
I got an interview with a top I-bank for an analyst spot on their stock loan sales desk. I know the desk basically enables buy-side clients to short a stock but why is there a whole desk allocated to the sales/trading aspect of securities lending?
I know the job involves - Portfolio analysis and stress testing - Production of profitability and usage metrics - Researching market information, and the impact on expected future values - Liaising with traders to determine the fair value of a portfolio - Supporting client negotiations over price and contract terms - Liaising with internal Legal to understansd restrictions for certain markets
Cheers
Sec lending consists of lending and borrowing bonds, etf's, and equities. There will most likely be at least 2 traders for each type of security, probably more at BB's, as well as a few analysts to support them. It's definitely not a one or two man job.
Read up a little more on sec lending because there's more to it than just covering shorts for hedge funds.
Is it a decent job? this is a sales job, what are they pitching to institutional investors? I understand there is more to sec lending than appears, but I don't understand the sales aspect of it.
Cheers, T
Almost everyone in securities lending is a "sales trader". The sales aspect comes into play when speaking with HF clients that are PBed at your bank. You have to discuss the borrowing costs and durability of the stock to get them into their short positions.
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