CMBS Compensation / Impact of Situs on CMBS Jobs
the First part of my question pertains to current CMBS compensation at the analyst / associate level. I've done some searching in the forums here but most everything relating to CMBS salaries seemed to be pre-2012ish. As most of you know, the conduits have seen a massive resurgence lately so I'm wondering what more recent hires are getting? Preferably at the new analyst, and associate (or 2-5 years of experience) level.
I read an article awhile back about how many people working for the BB CMBS shops are actually contractors from Situs. This obviously allows the banks to throttle up or down their staffing much easier than having actual employees based on what their demand is. How prevalent are Situs employees or contractors overall in the BB CMBS shops? How does the compensation for comparable jobs at Situs compare to the ibanks?
Thanks
My firm doesn't hire/outsource anyone from Situs, we use Situs as an extra "check" on our underwriting.
Second what raz said
I second what Raz and tobeornottobe said. Most people use them as a check. I know of one to two large banks who hire them as contractors and they are their analysts. As far as comp, I'm not sure what the situs contractors get paid. Associate level with 3-5 years experience can pull in anywhere from 150-400. Obviously it really fluctuates on the firm and how many deals you originate.
I would also like to know about the compensation structure - what are bonuses like for non-bank analysts?
Situs is used as a means to reduce internal overhead costs. A lot of the employees at small lean CMBS origination shops utilize Situs for due diligence outsourcing, and do a small amount of due diligence in house. Their employees generally source and structure the deals. At big banks however, a lot of employees in the conduit are employed by Situs, but sit at the bank. Their compensation is similar to if not the same as on balance sheet employees, including bonus (although it is probably all cash rather than partial stock). Basically banks have to allocate overhead (i.e. accounting/legal/compliance) to each groups headcount, so if a group has less on balance sheet employees their expenses are lower.
Wanted to bump this thread. Weere the BB CMBS groups impacted by the recent pay raise for analysts across the street? Ie, do first yr analysts in the JPM, Goldman, and MS CMBS groups have an $85k base? What is the % bonus level for analysts and associates?
From what I've heard, DB and UBS do contract employers somewhat from Situs in their CMBS groups. The people that I knew though did not seem to have a negative impact on comp, but they did feel more pressured in a downturn. GS and JPM do not contract employers and a friend of mine at one of those confirmed a increase in base salary commensurate with their classic IBD counterparts.
Reading this makes me wonder if anyone actually knows what they are posting about.
Situs is one of many 3rd party UW firms. Most BB use these firms for underwriting purposes because of what thisguy22 said.
CMBS Associate/VP compensation (Originally Posted: 02/16/2015)
Does anyone have an idea roughly of what base an bonus would be for a 2nd or 3rd year associate or a 1st year VP in CMBS in NYC at a big bank? I searched a lot but mostly found analyst numbers, so please don't throw monkey crap at me.
120-150.
All in, thats it? huh
$120-$150 seems low for vp, and even associate level....
Sounds way low, not buying that. Maybe at a third tier conduit in Raleigh NC.
Just turned down 1st yr Associate CMBS originations - $110k base + 50% bonus
Would you mind sharing your background and interview experience? Was this with a bank or conduit?
I think he said it was a Canadian Bank in a different thread
CMBS hours & comp (Originally Posted: 02/28/2014)
Can anyone give me a range of comp as an analyst working for a CMBS originator? From what I gathered from older posts, it seems that hours are a lot tougher than I thought. Anyone have an average hours per week estimate? Are the hours really comparable to ibanking? Thanks!
I'd also be interested. Also, how hours and comp compare between the ibanks and others (Redwood, C-III, the one-off's, etc).
No one? Would this post be better positioned in the investment banking forum?
I know a guy that had an analyst offer at $65k + 40% target bonus at a BB. Also another at $150k all in as an associate. 60-90 hours a week were expected based on deal flow. Can't speak to non-bank lenders.
Thanks. That helps and is pretty much what I expected. Would love to hear from others too.
@blankster you sure that info isn't stale? i was under the impression that first year analyst was much higher on both base and bonus.
A buddy of mine was a CMBS originations analyst at a top life-co and did $60K base + 20% bonus his first year (left after that); note that's a reflection of the work-life balance (think 50-60 hours/wk, no weekends)
hours and comp vary pretty significantly. The above $ for Lifeco actually sounds pretty accurate. Lifeco pays very different but is less intense. Hours are normally always choppy depending on the pipeline. I have buddies that would be putting in 30-40 hours one week, get slammed with deals and end up 90+ the following week. Also depends on the focus of the originator. The more complex the deals, the more painful for the analysts. i'd say a decent run of thumb for a year1 analyst is $100-$135k net avg 55-60hrs /wk. I never worked for a true CMBS originator but originated a lot of CRE loans, a decent portion of which was securitized. In my experience, the first 3-6 months are relatively rough. After that, i could crank out deals at an insane clip but i also had a lot of real estate experience. Regardless, the learning curve should be steep and once you get in the swing of things the work is a lot more manageable.
Mid Market CMBS shop, was around 100 hrs/week, $60k salary + $60 bonus. This is after working there 6 months as an intern while still in school.
Some life cos have hybrid AM/origination jobs.
Life co analyst (focus on b-notes/single asset deals) - 80k + 25k bonus - about 40-50 hrs a week for a 2nd year. (1.5 billion portfolio + 250 million in new purchases a year)
Life co associate (AAA focus) - 95k + 45k bonus - same hours. (2 billion portfolio + $300 million a year in new purchases).
Some life cos have hybrid AM/origination jobs.
Life co analyst (focus on b-notes/single asset deals) - 80k + 25k bonus - about 40-50 hrs a week for a 2nd year. (1.5 billion portfolio + 250 million in new purchases a year)
Life co associate (AAA focus) - 95k + 45k bonus - same hours. (2 billion portfolio + $300 million a year in new purchases).
[/quote] What do you mean purchases? If you're talking about buying notes, I didn't think that was common among lifecos.
Cum earum voluptatem non necessitatibus doloremque. Eveniet architecto perferendis corrupti asperiores quasi. Cupiditate praesentium eum illo doloremque alias eligendi. Vel rerum non repellat at. Rem quis delectus illo debitis.
Ducimus eos rem illum corrupti. Dolor veniam et distinctio dolores sequi ad laborum. Praesentium eligendi perspiciatis sequi et sunt.
Nulla vel dolor asperiores dolorum non occaecati. Praesentium repellendus similique voluptatum perspiciatis et. Neque voluptate veritatis autem reiciendis ad optio accusantium. Reprehenderit ducimus recusandae consequuntur et quis.
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...
Ut asperiores dolores doloribus quidem odit. Ipsum earum dolore enim reprehenderit nisi ut est quaerat. Voluptatibus sapiente aliquam odio deleniti sunt laudantium voluptatem voluptate. Consequuntur quia corporis quos velit numquam.
Molestiae ipsam illo sapiente vitae officia dolore delectus. Facere quaerat autem et alias architecto sed. Accusantium quia dolorum et fugit.