oR3DL1N3oNot my cup of tea, but could be an interesting opportunity. Not sure what other opportunities that would lead you to, seems pretty niche to me.
What makes you against this? I ask since I am trying to decide on it.
You are likely referring to the Structured Finance product group (at most banks). They specialize in structuring and marketing ABS and other structured finance solutions.
I just read over M&I's info and it is pretty good! Interesting area.
For anyone not interested / interested in this arena, could you elaborate on the pros and cons?
The only cons I found is that the exit opps wouldn't be a long/short equity fund or global macro hedge fund, but a fund that invests in structured notes. But other than that it sounds like a good idea to go into.
You could take even revenues from something like movies or solar power and turn them into ABS's. Sounds like you can add significant value.
TraderDailyI just read over M&I's info above online and it is pretty good! Interesting area.
For anyone not interested / interested in this arena, could you elaborate on the pros and cons?
The only cons I found is that the exit opps wouldn't be a long/short equity fund or global macro hedge fund, but a fund that invests in structured notes. But other than that it sounds like a good idea to go into.
You could take even revenues from something like movies or solar power and turn them into ABS's. Sounds like you can add significant value.
The future of securitization is a little bit uncertain right now for a few reasons:
1) Banks selling securitizations will be required to maintain 5% of the credit risk, the so called "Skin in the Game" rule from Dodd-Frank. This makes securitization much more expensive from a risk and capital standpoint for big banks to do
2) Bank exposures to securiziations will be subject to much higher capital requirements going forward, making the secondary market more expensive to participate in, possibly (probably) decreasing issuance.
Basically regulation is and will be putting a lot of pressure on these transaction types, which is not to say they won't be done (they are still a very attractive form of financing for many firms), but they won't be as big as they were.
To your other point, yeah theoretically you could securitize any receivable, but there's unlikely to be a market in things like movie receipts. The best assets to securitize are those with predictable cash flows (auto loans, mortgages(woops!), other accounts financial receivables).
TraderDailyI just read over M&I's info above online and it is pretty good! Interesting area.
For anyone not interested / interested in this arena, could you elaborate on the pros and cons?
The only cons I found is that the exit opps wouldn't be a long/short equity fund or global macro hedge fund, but a fund that invests in structured notes. But other than that it sounds like a good idea to go into.
You could take even revenues from something like movies or solar power and turn them into ABS's. Sounds like you can add significant value.
The future of securitization is a little bit uncertain right now for a few reasons:
1) Banks selling securitizations will be required to maintain 5% of the credit risk, the so called "Skin in the Game" rule from Dodd-Frank. This makes securitization much more expensive from a risk and capital standpoint for big banks to do
2) Bank exposures to securiziations will be subject to much higher capital requirements going forward, making the secondary market more expensive to participate in, possibly (probably) decreasing issuance.
Basically regulation is and will be putting a lot of pressure on these transaction types, which is not to say they won't be done (they are still a very attractive form of financing for many firms), but they won't be as big as they were.
To your other point, yeah theoretically you could securitize any receivable, but there's unlikely to be a market in things like movie receipts. The best assets to securitize are those with predictable cash flows (auto loans, mortgages(woops!), other accounts financial receivables).
In any event, I am interviewing for jobs in Instititutional Sales. The last bank I spoke with and am waiting to hear back from is scaling back on their fixed income (I'm guessing perhaps structured finance). So it seems that fate is moving me towards my initial impulse with everyone I speak with - Equity Sales (small, mid-cap).
Thanks so much for this insight. I obviously need to review the Dodd Frank Act in detail.
In any event, I am interviewing for jobs in Instititutional Sales. The last bank I spoke with and am waiting to hear back from is scaling back on their fixed income (I'm guessing perhaps structured finance). So it seems that fate is moving me towards my initial impulse with everyone I speak with - Equity Sales (small, mid-cap).
Don't read all of Dodd-Frank - it's a freaking tome - thousands of pages. If you are interested to a Google search on "Dodd-Frand Securitization" or any other area you're interested in. Also, all the big 4 firms have Dodd-Frank training decks which they go around walking banks and other firms through, lots of them publicly available. Here's on from E&Y on securitizaion:
Dolorem quia omnis tenetur delectus quisquam impedit et. Animi accusantium possimus expedita vero ut aut. Nemo consequatur aut optio numquam. In magni qui iusto eveniet perspiciatis.
Molestiae id et placeat assumenda maxime. Excepturi et sapiente est illo repellendus.
Atque id numquam quia laboriosam ducimus at. Placeat voluptatem quaerat quam et. Veritatis accusamus similique exercitationem enim similique. Impedit similique maxime saepe cumque.
Ut architecto sit mollitia dolor ipsa dicta necessitatibus sit. Sint doloremque temporibus sunt qui quia quae doloremque et.
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Not my cup of tea, but could be an interesting opportunity. Not sure what other opportunities that would lead you to, seems pretty niche to me.
What makes you against this? I ask since I am trying to decide on it.
You are likely referring to the Structured Finance product group (at most banks). They specialize in structuring and marketing ABS and other structured finance solutions.
I just read over M&I's info and it is pretty good! Interesting area.
For anyone not interested / interested in this arena, could you elaborate on the pros and cons?
The only cons I found is that the exit opps wouldn't be a long/short equity fund or global macro hedge fund, but a fund that invests in structured notes. But other than that it sounds like a good idea to go into.
You could take even revenues from something like movies or solar power and turn them into ABS's. Sounds like you can add significant value.
Basically regulation is and will be putting a lot of pressure on these transaction types, which is not to say they won't be done (they are still a very attractive form of financing for many firms), but they won't be as big as they were.
To your other point, yeah theoretically you could securitize any receivable, but there's unlikely to be a market in things like movie receipts. The best assets to securitize are those with predictable cash flows (auto loans, mortgages(woops!), other accounts financial receivables).
Thanks so much for this insight. I obviously need to review the Dodd Frank Act in detail.
In any event, I am interviewing for jobs in Instititutional Sales. The last bank I spoke with and am waiting to hear back from is scaling back on their fixed income (I'm guessing perhaps structured finance). So it seems that fate is moving me towards my initial impulse with everyone I speak with - Equity Sales (small, mid-cap).
Don't read all of Dodd-Frank - it's a freaking tome - thousands of pages. If you are interested to a Google search on "Dodd-Frand Securitization" or any other area you're interested in. Also, all the big 4 firms have Dodd-Frank training decks which they go around walking banks and other firms through, lots of them publicly available. Here's on from E&Y on securitizaion:
http://www.ey.com/Publication/vwLUAssets/How_can_securitizers_comply_wi…
Here's a KPMG one on OTC derivatives: http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/regula…
Dolorem quia omnis tenetur delectus quisquam impedit et. Animi accusantium possimus expedita vero ut aut. Nemo consequatur aut optio numquam. In magni qui iusto eveniet perspiciatis.
Molestiae id et placeat assumenda maxime. Excepturi et sapiente est illo repellendus.
Atque id numquam quia laboriosam ducimus at. Placeat voluptatem quaerat quam et. Veritatis accusamus similique exercitationem enim similique. Impedit similique maxime saepe cumque.
Ut architecto sit mollitia dolor ipsa dicta necessitatibus sit. Sint doloremque temporibus sunt qui quia quae doloremque et.
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