Securities lending/ Equity Finance
Just looking for some info on the desk. is it considered a s&t desk. what is the comp like as well as hours. in addition are there exit opportunities to other s&t desks?
Based on the most helpful WSO content, securities lending or equity finance desks are generally considered part of the broader Sales & Trading (S&T) umbrella. These desks focus on facilitating short-selling by lending securities to clients, managing collateral, and optimizing inventory.
Key Points:
Compensation and Hours:
Exit Opportunities:
If you're looking for a role with more technical or quantitative exposure, you might want to consider desks like equity derivatives or structured products. However, securities lending can still provide a solid foundation in the S&T world.
Sources: Fixed Income Sales and Trading 101, S&T Summer Analyst Lateral to IB FT?, 2021 S&T Bonus, HELP: The Future of the S&T Job Market and Selecting the Right Desk
bad seat
why do you say that?
In my opinion, securities finance and seclending is one of the the most underrated jobs on the street. That being said, it does have tradeoffs in terms of compensation. On average, you will make less than your peers in other groups that are considered high performers. You will probably never have a multi-million dollar pay out, but you will still make mid six figures. My observation is that you trade a higher right tail outcome from a comp perspective (that few will achieve anyways) for a solid compensation package, stability, and low seat turnover. With the caveat that you need to find a company that values the role and views you as front office. If you are not viewed as front office staff you will be compensated accordingly. Also, assuming this to be your first role out of school it’s a good place to get exposure to a semi-risk taking seat that you can learn about markets and can parlay to a risk taking seat down the road if you choose.
Need to distinguish between agency securities lending and those done by prime brokers. SBL within prime is much more desirable and certainly within S&T.
If your goal is PM at a hedge fund, yeah SBL may be a 'bad seat'. People dont move from SBL to risk taking seats. Im sure there are some exceptions, but it is a rarity. That said, if your goal is just to make solid $, it is far from a bad role. SBL traders exit to hedge fund treasury roles, or just stay sell side forever.
Quidem cupiditate veniam autem provident dolores ut ipsum. Cumque aspernatur sit cupiditate est. Earum officiis et voluptas beatae ducimus et.
Eius est alias error non dicta. Voluptates beatae totam possimus soluta possimus. Eum ut perferendis sit nemo quos. Sed similique perspiciatis ducimus impedit voluptatem vitae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...