What do CRE analysts/CMBS analysts really do at fixed income shops?
I have seen many postings for CRE analyst/CMBS analyst at buy-side fixed income shops recently (including top buy-side like PIMCO. The language in the postings sounds like they are hiring people who can underwrite mortgages at the property level. For example: "Assist in asset-level credit underwriting of CMBS loans", "Assist with deal execution, including drafting and negotiating acquisition and joint venture term sheets, and reviewing deal documentation", or "Research, analyze, underwrite and evaluate commercial real estate investment opportunities".
Is it common that buy-side fixed income shops hiring people for asset-level underwriting for CMBS investment? I thought that CMBS analyst at places like PIMCO, Doubleline, or TWC tend to spend the majority of the time to research macro things such as prepayment trend, delinquency trend, business activities, etc. What about at places like Pine River or Lone Star? Do they underwrite at the property level or they solely focus on macro things?
PIMCO manages +$15b of property investments in the US & Europe. They launched their opportunistic real estate investment platform in 2007. They fly under the radar for their direct investments, however, they recently closed BRAVO II at $5.5b.
So I am going to go on a hunch, but I would assume that the opening was for an analyst position within a direct investment platform.
bump - I've seen these postings as well and have been interested in what the actual position entails.
there are people underwriting at the asset level of CMBS trusts at buy side cre shops.
Do these guys participate in the investment process at all such as selecting which CMBS, which tranche, etc. and managing the portfolio such as duration management, yield curve/spread analysis, etc.? Or they pretty much just underwrite at the asset level and save the work in the database so that the real "bond guy" will determine which CMBS to buy?
bump
hey I work on the CMBS trading desk of a buy-side shop.
How it works here is that we have the 2-3 guys on the desk (me, an analyst and the MD) and a Credit group that does the underlying CRE analysis when we're looking at new issue and secondary market positions. The Credit group also functions as Underwriters of direct loans, mezz, and construction additionally (which our firm also does).
My main role is to run bond-side analysis on the purchases and look for new trade ideas in the secondary market.
The analyst's main role is reporting and running monthly cash flows on level III accounting positions (which exist due to accounting rules I'd rather not go into) while they're learning the ropes.
Although I will say that when we have a time crunch, myself and the analyst will pick up some of the work from the Credit group and help underwrite loans in the pool we're looking to purchase tranches in. I started as an analyst here on the desk and learned a ton even after doing some CMBS investing in my first role. It helps to have a background in CRE for the positions - such as an internship or coursework directly related to commercial real estate finance. Also being good with technology is a huge plus and something we look for in new hires.
**** One more thing - if an analyst role like that sounds interesting we're currently hiring for one our desk. PM me for resume exchange if you feel you're interested and qualified. If you're not interested or qualified I can still hopefully help answer some questions you may have.
CMBS Investment Analyst (Bonds) (Originally Posted: 02/22/2014)
Hello.
Just wondering if anyone had any insight as to what a CMBS investment analyst at a hf/am does on a day-to-day basis? And also, what does such a typical role require in terms of skill set?
Just a little background on myself. I have recently been working at a major CMBS issuer (think top 5 BB) underwriting new issue loans (all major asset classes) as well as sizing new deals on a daily basis for the past 7-8 months. I have been really enjoying the work and the people I work with tell me that I do a great job and have learned underwriting rather quickly. While I was in college I was really interested in becoming a structured credit trader (I did a few S&T internships including at a BB as well as a one at a buyside shop). I would be really interested in working at a fund that trades CMBS but ive never really got a real sense of what a CMBS investment analyst does.
On one hand I understand that funds that trade CMBS (particularly senior legacy bonds such as AMs and AJs) re-underwrite the top 10-15 loans (and any in special servicing). However I have also heard of roles that just focus on excel and modeling the actual bonds. I am just confused if there are two different kinds of investment analyst roles or if it is a combination of real estate and knowing fixed income. Luckily I have a really good background in fixed income (college classes, internships, projects) and I understand the different CMBS classes really well. I also have a lot of experience excel and writing macros in VBA, specifically for CMBS. And I am also becoming proficient at commercial real estate by sizing and underwriting new issue deals. So just wondering if it would make sense for me to look at these funds after i finish up a couple of years at this place? Or would going to a CRE Debt fund be a an easier and more natural fit.
Thanks,
If you're looking for more information on the day to day or a CMBS investor the RE subforum may not be the best place. Once CMBS gets packages and sold the fundamentals of what makes them a good investment are far from real estate. They are just another credit product.
There are very few hedgefunds that invest in CMBS. If they do its because most of the tranches are wiped out or its a b-piece they are buying. Most CMBS (by volume) buyers (as I'm sure you know since you work for an issuer) are insurers, banks, money managers etc.
But anyways the bond forums here will be much more help to you.
Good luck
Thanks for your reply.
Yep alot of them are the big insurers and money managers. I do realize CMBS/CMBX is usually a small portion of HFs portfolio. Will try another forums for this.
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