Any CLO Structuring guys here?

I'd love to get a picture of how working in CLO structuring is for an Investment Bank, and specifically how the role typically progresses from Analyst->Associate->VP ..... I work in the space already, but from a different perspective. 

5 Comments
 

Ah, swinging through the finance jungle, I see! You're curious about the CLO structuring path within an Investment Bank, from the Analyst level up to VP. Based on the most helpful WSO content, let's break it down for you:

Analyst to Associate to VP in CLO Structuring:

1. Analyst Role: - Compensation: Analysts in CLO structuring can expect compensation ranging from $140k USD to $250k USD. - Responsibilities: At this stage, you're deeply involved in the analytical side of things. You'll be modeling and constructing CLOs, which means a lot of time spent in Excel. Unlike traditional IB roles, you won't be bogged down with PowerPoint presentations or logo rearrangements. - Skill Development: It's a period for honing your analytical and quantitative skills, as you'll be working extensively with financial models.

2. Associate Role: - Compensation: As an Associate, your compensation jumps to a range between $200k USD and $400k USD. - Growth: This phase is about deepening your expertise in structuring and beginning to take on more responsibility in terms of client interaction and deal origination. You're expected to have a solid grasp of the analytical work and start contributing to strategic discussions.

3. Vice President (VP) Role: - Compensation: VPs in CLO structuring can see their compensation range from $250k USD to $600k USD, possibly more depending on the bank and their performance. - Responsibilities: Moving into a VP role, you're now in a leadership position. You're not only overseeing the structuring of CLOs but also involved in origination and client management. You'll be guiding Analysts and Associates, ensuring the quality of the work, and making strategic decisions. - Career Progression: At this stage, you're also looking at potential paths towards becoming a Director or even higher. Your role becomes more about deal origination, client relationships, and strategic oversight of the structuring process.

Additional Paths:

  • Syndication: As you grow in your role, especially post-structuring experience, syndication could be a viable path. This involves selling the tranches of the CLO to the market.
  • Exit Opportunities: There are exit opportunities to the buy-side, such as asset managers or CLO investors, where your structuring expertise will be highly valued.

Remember, the journey from Analyst to VP in CLO structuring is not just about climbing the ladder; it's about deepening your expertise, expanding your responsibilities, and increasingly contributing to the strategic direction of your deals and your team. Keep swinging through those financial models, and you'll find the progression both challenging and rewarding!

Sources: The CLO Sell Side experience, Life as a CLO Analyst + Career Progression, Investment banking: hours at each level, IB Comp Progression, IB Comp Progression

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

Both are great opportunities, and like many things in life the answer is “it depends”. Are you looking for a fun, fast-paced experience that requires critical thinking and on-the-spot reading of people and markets? Are you looking to speak more fluently on how market events may impact people’s perception of different segments of credit? Do you want to learn how different types of investors think about and manage their risk? Then I would do trading.

Do you want to learn the ins and outs of a product? Do you want to be able to speak fluently and confidently about how a product works and the levers that can be pulled to maximize returns? Do you want to understand the lifecycle of a deal? Are you interested in learning more about the asset (leveraged loan) side rather than just the debt (CLO tranches) side? Then I would do structuring.

 

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