Interested in structured products

To break into structured products, your background in fixed income sales & trading and equity research already provides a solid foundation. Based on the most helpful WSO content, here are some insights and recommendations:

1. Relevant Roles for Entry:

   • Commercial Banking: This can be a stepping stone, especially if you focus on credit analysis or lending. It provides exposure to financial modeling and credit structuring, which are valuable skills for structured finance.
   • Real Estate Finance: Roles in debt and structured finance brokerage or real estate banking can be relevant, particularly if they involve modeling loan structures like mezzanine financing or securitized products.
   • Debt Capital Markets (DCM): If you can secure a role in DCM, it aligns closely with structured finance, especially in areas like ABS (Asset-Backed Securities) or CLO (Collateralized Loan Obligations) origination.
   • Securitized Products Teams: Directly targeting roles in securitized products within investment banks is ideal, as it provides hands-on experience with structured finance instruments.

2. Skills to Build:

   • Financial Modeling: Strengthen your modeling skills, particularly for structured products. Building models from the ground up, as you’ve done in equity research, is a great start.
   • Understanding Structured Products: Deepen your knowledge of products like ABS, CLOs, and other securitized instruments. This will make you a more attractive candidate for specialized roles.
   • Quantitative Skills: If your graduate program offers courses in financial engineering or computational finance, leverage them to enhance your quantitative expertise.

3. Networking and Internships:

   • Networking is crucial in structured finance, as many roles are filled internally or through referrals. Reach out to professionals in structured products teams or alumni from your graduate program.
   • Consider internships in structured finance or related areas, even if they are off-cycle, to gain direct exposure.

4. Exit Opportunities:

   • Structured finance roles can lead to opportunities in asset management, hedge funds, or private credit firms that specialize in structured products. Firms like PIMCO, Wellington, and credit-focused hedge funds are known to value this expertise.

Roles in real estate or commercial banking can be valuable stepping stones, but targeting positions in DCM or securitized products teams would provide stronger preparation for a career in structured finance.

Sources: Intro to Investment Banking, https://www.wallstreetoasis.com/forum/investment-banking/structured-finance-outlook-and-exit-opportunities?customgpt=1, graduated may 2019 and recently laid off first job, 22 Year Old Failure Seeks Advice re: Breaking into Finance