Interview questions for Securities Lending?
Hi WSO,
I have an interview coming up for an entry level Securities Lending - Prime Services position.
What interview questions should I expect in terms of technicals, stock pitches, fit questions etc.
How are the interviews for securities lending similar/different than a traditional S&T interview?
Any help from those in the industry would be much appreciated.
Thanks.
Anyone? I've tried using the search function but alot of the information is outdated/unhelpful.
which company? each company has different types of interviewing and this will be better for us to help give you questions and things to know.
know what short interest is, what % of mkt is short and the effect it has on stocks (i.e.if high short interest and earning outperfrom expect a strong uptick) , know why funds borrow stock (cheaper way of earning the return on the stock as you dont actually own it ), know how the process works (IB owns the stock can therefore lend it out and take make a small margin), flow arbirtage I think also comes into it (i.e. dividend tax arbirtage - bank has entities and platforms to get full dividend and provides this service for a fee to others), know who some of the big buyside players are - I'm no expert but that stikes me as the bare minimum you should know.
know what short interest is, what % of mkt is short and the effect it has on stocks (i.e.if high short interest and earning outperfrom expect a strong uptick) , know why funds borrow stock (cheaper way of earning the return on the stock as you dont actually own it ), know how the process works (IB owns the stock can therefore lend it out and take make a small margin), flow arbirtage I think also comes into it (i.e. dividend tax arbirtage - bank has entities and platforms to get full dividend and provides this service for a fee to others), know who some of the big buyside players are - I'm no expert but that stikes me as the bare minimum you should know.
How to prepare for an interview in Global Securities Lending? (Originally Posted: 04/13/2010)
Hey everyone,
This is my first time posting and I hope that I am doing so in the correct place. Tomorrow, I have a phone interview for a position in Global Securities Lending. I'm not sure what to expect and I was hoping that one of you could provide more insight into what the interviewer is looking for or suggest technical questions that he/she might ask? (e.g. walk me through a statement of CF) ...
The job description reads as follows:
"Responsible for the timely and accurate input/production/reconciliation and reporting of US and Non-US daily global Securities Lending activity. This includes, but is not limited to: stock loan trade settlement, collateral maintenance, corporate actions claims processing, income collection and disbursement. S/he will have extensive daily communications with internal and external customers to effectively research and resolve any discrepancies resulting from the daily GSL activity."
What skills would be needed as an entry level candidate? What type of technical questions should I prepare for? Can you suggest any questions that I should ask?
Thanks in advance for your advice and I truly appreciate any help!
DO NOT TAKE THIS JOB (unless you're unemployed with a family of 14 to feed and are broke on the streets)
This is an operations role within stock loan. If you enjoy operations, then by all means go ahead and do it. If this is going to be your first job, then try to find something better.
Every day you will be MTM'ing contracts, which entails balancing between subsidiaries and counterparties. You will then ensure that all corporate actions that come in are processed on securities that are currently being lent or borrowed. The income collection and disbursement part is the worst - my company outsources it to India; essentially this is "billing" and all you do is make sure that there are no cash breaks from rate differences, contract date differences, and mark differences.
There is nothing you really need to know except how a borrow and loan contract works. You borrow or lend securities and then provide collateral and then receive or return securities and collateral which has a certain rate applied to it.
Even if this job is to be a stock loan trader you wouldn't want to take it because it's a dead end. No exit opportunities, no relevant skills. The above sounds like an operations role which is even worse.
Let me know if you want even more details via PM.
I acutally work in a capacity very close to the description you listed... trust me...like the above posted said, if you don't have 50 kids and broke living on the street...don't take it and shop around... no exit ops except more boring custody/income type of positions... (unless you do a MBA later) just my 2cents... gluck
Bit harsh.. everyone has to start somewhere. Also, I know plenty of people who have gone from back office to middle office to front office in stock loan and then onto the swaps side....
Morgan Stanley Equity Securities Lending Division SA (Originally Posted: 01/30/2008)
Has anyone previously gone through this interview process? What kind of questions can I expect? Any details on this specific division would be greatly appreciated. Thanks in advance.
Bump
PM
Interview - Securities Lending and Financing Supply (Originally Posted: 05/28/2011)
Hi All
I have an interview coming up with a BB in the 'Securities Lending and Financing Supply' desk.
Anyone tell me what kind of questions I can expect? Its for an internship at the analyst level.
Ive prepared the usual finance / fit questions - answers.
Should I know anything in specific?
Many thanks!!
Is this a BO role? If it is then it'll only be fit questions.
i actually have 1 or 2 sec lending primers if you want to PM me your email
Looking at your suffix HSG and the desk name, I have a good idea where and at which company.
When I interviewed with the group I'm assuming you will be talking to, there were no technical questions whatsoever, no brainteasers, just friendly chatting. They liked being asked questions and seemed to be proud of their team cohesion. Great guys.
Advice - Securities Lending/Prime Broke (Originally Posted: 05/18/2011)
i have an interview coming up in Brooklyn for Securities Lending Trade Support with MS. For a guy with a less than stellar background (non target ug, non target MBA, insurance broking experience) it originally sounded like a good deal.
I've read some bad things on here about Lending though, especially on the operations side. I would love to do operations on an equities or f/x desk down the line, so is this a good stepping stone??
My only other offer is with a regulatory agency, regulating futures/commodities. Would this trade support job be a bad idea over this?? I've heard base is around 60 plus OT...the regulatory is 56K....
I'm just trying to get my career moving in the right direction, and I want to make as much money as I can....any advice at all would be greatly appreciated. I know I'm not going to be a trader or an I-banker. but making 250K 15-20 years from now (i'm 24) sounds great to me...
Can I do that from this role down the line? If I network??
I don't think I've ever heard of anyone making it big in the BO.
Go with your gut - where will you be happy? If you like working somewhere, you are more likely to work harder and get noticed. If you don't like working there, you'll just end up muddling along.
Thanks for the advice...I really don't know what I'll like. All my options are back-office/finance/sales roles. I just want to put myself in a position to be successful down the line.
Necessitatibus eligendi officiis adipisci laudantium adipisci iure et. Est aut velit nisi id pariatur natus. Ut quam blanditiis id illum. Est accusantium illo sapiente velit est consequatur incidunt. Autem sit blanditiis et magni illum ea.
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...