BB CMBS Loan Origination Groups
I was curious if anyone has any insight into exit opps for top CMBS shops loan origination groups. Assuming your group works on various deals (mezz, bridge, senior debt, construction, land etc), how marketable are you to REPE firms? Even though you didn't work in the REIB group and gain exposure to portfolio type takeovers, you probably have a better understanding of asset level issues due to your experience cranking through deals.
Thoughts, opinions? Anyone feel free to chime in.
Also, staying on that subject, how lucrative are these type of positions say at the associate/VP/director levels? Could be a solid market to break into before the next boom. I'd be curious to know what these underwriter & originators made back in the go-go years.
This has been talked about before, but I definitely HAVE seen people go straight from CMBS to acquisitions. I'm not talking about acquisitions at super-elite places like Fortress, but definitely REITs, etc.
I work in a non-bank CMBS shop and I know the MDs are making between $2-3MM and the VPs are between $750K-1.5MM
I can't really give you a number for analyst or associate though
Spinion- what kind of hours do various roles in your group work (analyst, associate, vp, etc)?
We need more structured finance guys around here. PM me if you want to talk specifics.
The general consensus seems to be that REIB serves as a better feeder into REPE than CMBS. At the same time, while that may be the rule, I do believe that there are certainly exceptions. This may not be the case at Blackstone and the like, but I know of people from less "sexy" backgrounds (brokerage, workout) that have made it into REPE at reputable shops in big markets.
I work in CMBS origination currently and hope to parlay into a REPE job using the same logic already stated - I have experience in asset level analysis. I don't know of any CMBS people that have done this, but looking around, I don't know many junior level CMBS people period. Most were either fired or left the business.
With regard to pay its very market dependent. Business can literally stop on a dime. Last summer with the fallout resulting from the debt ceiling debacle and issues in Europe, the market completely shut down. At the associate level, bonuses were not affected very much, but MDs killed it in 05/06/07 and now all in comp is much lower. Considering the CMBS market did a couple hundred billion in 06/07 and now struggles to get above $50B, the return of big checks is uncertain.
Hey Spinion, do you guys focus on the senior part of the capital structure or do mezz as well?
We only do senior debt in my group.. the investment arm of the firm is raising a mezz fund and we are thinking about doing the same, but this is a conduit shop so it is hard for us to justify giving mezz on these if we can't scale and securitize (we just don't see large enough loans and $3MM of mezz at a time is a no go). When we scale and bring in more large loans we will enact our mezz fund.
It is definitely possible to go from CMBS to REPE, have seen it done several times (however localized to NYC). That being said, it is important to get asset and portfolio level underwriting/modeling experience. Underwriting real estate debt is not rocket science. Use your time in CMBS to learn modeling, how cash flows through the various capital structures, and the nuances of CRE as an asset class. The transition from RE debt to equity is not bad. However, if you don't know what a floorplate is or can't forecast out a simple 10-year excel cash flow of a retail property you are going to get shit on during the interview process.
Furthermore, the fact you are at a BB is good. Getting exposure to real institutional clients and large deals (e.g. $100mm+) on a consistent basis will help your case significantly. You will get instant creditability saying you worked on a $1bn origination for BX as opposed to a bunch of smaller $10mm loans with no name clients.
BB CMBS Originations/Underwriting Interview - Lateral (Originally Posted: 07/28/2015)
I have an upcoming interview at a BB for a CMBS Originations/Underwriting analyst position. I've seen some recent threads about these positions, but not much in the way of what to expect in the interview, can anyone shed light on this? I'm assuming I should know about the CMBS process and the market today, but in terms of the underlying collateral how much technical knowledge do I need? I have experience in multifamily, but nothing in terms of the other asset classes that make up CMBS.
Any help would be very much appreciated, thanks!
anyone?
Just know how the tranches work, know how to read an offering, what the pricing has been recently on AAA BBB BBB- tranches over LIBOR. Also know basic technical lingo DSCR, LTV, Interest Only, Amort, etc. If you know the song and dance you're fine. Look a recent offering and get familiar with it-- refer to the deal in your interview.
Conduit CMBS prices over swaps...... not LIBOR
Floaters are issued at par and are pegged to 1 mo LIBOR. So they technically aren't "priced" at all. IOs can be priced over treasuries.
BB ibank Real Estate/CMBS (Originally Posted: 04/27/2007)
Hi guys,
This is my first post and I'm really excited to join the community. I recently received an offer as a summer analyst position at a BB ibank CMBS (CMBS is part of their ibank division). I am greatful for the opportunity and looking forward to this summer. For those of you who are familiar with real estate banking/CMBS, I was wondering if you can share your wisdom and experience about the skill sets you develop in this industry and the opportunities in the future.
Thanks, appreciate your input!
i've heard you can move into some top hedge funds, or become a trader....sorry i know that isn't much help
Ah, good times ... Now that it's 2011, we can now confirm that everyone who started in CMBS in '07 eventually moved on to great hedge fund jobs and/or to make tons of money as MBS traders. It appears that my advice in early '07 has truly stood the test of time.
Thanks for the info prospie. I would think since you gain a lot of underwriting skills, you would work in real estate PE or investing?
Anyone else have commments?
bump
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