Best Response

Congrats on landing the interview. I have experience in the asset-backed space, so I can probably provide some guidance/color here.

Normally, you would be assigned to cover either the agency or non-agency mortgage market. Agency RMBS has several areas of focus including pass-through securities (Fannie Mae / Freddie Mac / Ginnies) and agency derivatives (CMOs, IOs, POs, etc.). Non-agency MBS is anything not issued by Fannie, Freddie, or Ginnie (i.e., private label MBS). The focus in agency space is on prepayments, whereas non-agency space is about both prepayment risk and credit risk. Research desks publish periodicals covering everything from general market color (e.g., supply and demand fundamentals), policy/regulatory proposals that affect markets (e.g., fed policy), relative value (i.e., vs. benchmarks and other securities), new products, and performance.

Most shops have analysts (all titles) specialize in particular areas in one space until they are more senior. For example, if you're on the agency RMBS team you could focus on new issue securities (e.g., specified pools) or conventional pass-throughs (freddie/fannie MBS). On the other hand, if you're assigned to the non-agency desk you could focus on either legacy credit (pre-crisis MBS) or the new issue market.

Generally, guys/gals in these groups have good quant and programming skills (most have master's degrees in an applied science... two guys at a BB i worked for had PhDs from MIT). To be good at the job, you have to be comfortable with what drives the models (e.g., rates, volatility, prepayment, credit) that are used to value MBS and how to interpret differences between what the market and models are telling you.

I would say that this is very different from typical equity research and is more technical/quant oriented.

Hope this helps.

 

Wow thanks for info. It would seem like an advantage of this type of a role over an equity research type position would be that its much more broad and you aren't necessarily pigeon holing yourself into a particular industry. Does this seem correct? Do you know how the exit opportunities would compare versus an equity research position and any cons that I should consider before jumping into it?

 

Consequatur architecto in rerum enim facere id error. Atque aut quod fugit tenetur deleniti numquam. Accusantium voluptas voluptatem tenetur aut. Quisquam vel officia quia voluptatibus placeat veritatis.

Voluptatem neque dolor quia cum. Consectetur consequatur quasi ea reprehenderit. Possimus eos et suscipit pariatur veritatis velit. Repellendus fugiat rerum eligendi qui qui. Et ab enim non voluptatem distinctio necessitatibus.

Eum labore ex sed numquam omnis molestiae. Recusandae mollitia quo unde pariatur. Rerum ipsum aut ipsam blanditiis est. Voluptatem repudiandae ut vero.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”