Esoteric Securitisation

Based on the most helpful WSO content, here’s what you need to know about securitization and how it might align with your interest in Intellectual Property (IP):

1. Exposure to Intellectual Property (IP):

   • Esoteric securitization often involves structuring asset-backed securities from non-traditional or unique assets, which can include intellectual property such as patents, trademarks, or royalties. This could provide direct exposure to IP, especially in deals where IP rights are monetized or used as collateral.

2. Key Aspects of Daily Work:

   • Analysts in securitization typically engage in tasks like structuring deals, performing credit analysis, and creating financial models. For esoteric assets like IP, this might involve assessing the value and revenue potential of the IP, understanding legal frameworks, and working closely with legal teams to ensure compliance.

3. Types of Assets Securitized:

   • Beyond traditional assets like mortgages or auto loans, esoteric securitization can include assets such as music royalties, film rights, pharmaceutical patents, and other IP-related revenue streams.

4. Key Skills and Backgrounds Recruiters Look For:

   • Strong analytical and quantitative skills are essential, as is attention to detail. A STEM background can be a significant advantage, especially if you can demonstrate an understanding of financial concepts and modeling.
   • Highlight transferable skills from your STEM degree, such as problem-solving, data analysis, and technical expertise.
   • Familiarity with bond math, expected values, and the concept of "true sale" (a key aspect in securitization) can make your profile stand out.

5. How to Stand Out Without a Finance Background:

   • Take advantage of resources like the WSO Academy or financial modeling courses to build your finance knowledge.
   • Tailor your resume to emphasize relevant skills and experiences, even if they’re not directly finance-related.
   • Networking is crucial—research key players in the space and reach out to professionals for informational interviews.

6. Graduate Opportunities and Key Players in London/Europe:

   • While specific firms aren’t listed in the context, securitization groups within major investment banks and boutique firms in London/Europe are likely to have opportunities. Networking and research into firms with a focus on esoteric assets will be key.
   • Graduate programs in investment banking often include rotations, which could provide exposure to securitization.

7. Deal Flow:

   • Esoteric securitization is a niche area, so deal flow may be less frequent compared to traditional asset classes. However, the unique nature of these deals can make the work highly specialized and rewarding.

For further insights, consider exploring WSO’s resources on investment banking training, resume reviews, and mock interviews to strengthen your profile.

Sources: https://www.wallstreetoasis.com/forum/investment-banking/investment-banking-in-the-uk-an-overview?customgpt=1, Esoteric & Niche Investments, Six things I have learned after joining a top business school - Part Two, Securitization - The hidden gem of IB?, London - Most Prestigious Grad Roles