MFE or Securities Lending Trader Position
Hi everyone,
I’m at a crossroads about which path to take. I graduated a little over two years ago with majors in Computer Science, Economics, and Math. Since then, I’ve worked at a fintech company in the Securities Lending space. While I was initially on the tech side, I’ve realized how much more interesting the trading side is. I’ve been networking internally for a year but didn’t think it would work out, so about two months ago, I figured applying to MFE programs was my only option. However, I was just offered a position on the only trading desk, which focuses solely on Securities Lending transactions.
Now, I’m faced with a dilemma about whether I should still try to go to school. My concern is that my test scores are not great for MFE (165 Q, 160 V), but I do have time to retake the test once more. I’m American and have two years of work experience, which may be beneficial according to posts I've read.
I don’t want to work as a Securities Lending Trader for my entire career, so I’m wondering if anyone thinks it’s worth forgoing the MFE to try to switch to a different desk at a different company in the future.
Based on the most helpful WSO content, here's what you need to consider:
Securities Lending Trader Position: Taking this role gives you immediate front-office experience, which is highly valuable. While Securities Lending is niche, it can serve as a stepping stone to other trading desks or roles in the future. Networking internally and externally while in this role could open doors to broader opportunities in trading or finance.
MFE Program: An MFE is a strong credential, especially for quant-heavy roles or transitioning into areas like quant trading, risk management, or portfolio management. However, your current GRE scores (165 Q, 160 V) might not be competitive for top-tier programs. Retaking the test could improve your chances, but it’s worth considering the time and effort required.
Career Goals: If your ultimate goal is to move beyond Securities Lending, the trading role could provide a practical path to gain experience and build a network. On the other hand, an MFE could help you pivot into more quantitative or technical roles, but it comes with the opportunity cost of leaving the workforce and the financial burden of tuition.
Market Perception: Front-office experience is often more highly regarded than academic credentials in many areas of finance. If you can leverage the trading role to transition to a more desirable desk or firm, it might outweigh the benefits of an MFE.
Timing: You can always pursue an MFE later if you feel it’s necessary for your career progression. Gaining trading experience now could make you a stronger candidate for top programs in the future, should you decide to apply.
Recommendation: Accept the Securities Lending Trader position and focus on excelling in the role while networking and exploring opportunities to transition to other desks or firms. Keep the MFE as a potential option for the future if you find it necessary to achieve your long-term goals.
Sources: Best internships for Quant Trading?, Deciding on quantitive majors/career path?, MFE right after graduation vs IB, Masters in Finance after M.S. in Financial Engineering, yay or nay?, MSF Question and Answer
Take the job my man, degrees are becoming worthless by the day.
I don't get what you are asking. You don't even know what MFE program you will get into. Go take the job while you see what MFE you can get into? It's not a binary choice here...
I probably could’ve worded this a little better. What you said is my current plan. Let me add some background. I was asking whether it would make sense to pursue an MFE program if it’s not from a top-tier school, or if it would make more sense to stay in a Sec Lending Trading role. Also, is it possible to transition from a niche company’s Sec Lending Trading desk to a real Equity or Fixed Income desk at a bank or hedge fund? I haven’t found much information on WSO or elsewhere about exit opportunities from Sec Lending Trading.
You wont go from securities lending to fixed income or most equities seats. You may be able to go to hedge fund treasury roles but those generally prefer traders from prime brokers. I am guessing you are at some place like eSecLending. You may need to move to another agency securities lending role at a bigger bank and then try to move to a prime brokerage seat. Securities lending in a PB can make good money, and you have optionality to move to treasury roles at hedge fund down the road.
Hard to say vs a T1 MFE. I guess depends on how much you get paid now. T2 MFE is probably not worth it.
Any idea of the ballpark for sec lending in PB? Also, any idea what is the cutoff for what would be considered T1 vs T2 for MFE?
Hi bro - no clue about anything you said. Good look in your future endeavors. You are in my prayers bro
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