Hi all, I'm about to join FT at a BB (think JPM/BofA) in their esoteric ABS team. My questions are two folds:
a) what are the typical exits from this group? I've been seeing a lot of buyside asset based finance teams poaching analsyts and asscoiates from these teams.
b) do juniors get proper exposure to cash flow modeling? what tools are used beside excel?
Many thanks!
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Based on the most helpful WSO content, here’s what you need to know:
a) Typical Exits from ABS Banking/Structured Finance Teams:
- Analysts in esoteric ABS teams often transition to buyside asset-based finance teams, as you've observed. These roles typically involve working with private credit funds, hedge funds, or specialized investment firms focusing on structured products or asset-backed securities.
- Other potential exits include credit funds, infrastructure funds, or even corporate development roles within companies that deal with structured finance or securitization.
- While the prestige of the group and the bank can influence exit opportunities, proactive networking and showcasing your expertise in structured products will be key to landing top roles.
b) Exposure to Cash Flow Modeling and Tools:
- Juniors in ABS/Structured Finance teams generally get solid exposure to cash flow modeling, as it is a critical component of the job. You'll likely work on projecting cash flows for various asset pools and understanding repayment structures.
- Excel is the primary tool used for modeling, but depending on the bank, you might also encounter specialized software or tools for structured finance analytics, such as Intex or Bloomberg Terminal for deal structuring and performance analysis.
If you're aiming to maximize your experience, focus on mastering these tools and building a strong foundation in cash flow modeling, as these skills are highly transferable to buyside roles.
Sources: ECM Exit Opportunities, Breakdown of Post-IB Exit Opportunities, A Few Observations on Investment Banking Exit Opportunities, Q&A: 3rd Year Private Bank Analyst, Investment Banking Analyst: A True Day in the Life
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This post confuses me a lot. I can’t tell if it is god tier shitpost, or if someone created a bot account, left it for 3 years, and then only now used it to post nonsense.
I meant to reply to a question on Keith Allman's excel files but replied to the wrong thread.
Firstly, exit opps generally happen later than they do in the rest of IB. Instead of taking a senior analyst or junior associate, generally it happens at VP and above, from what I've seen.
As you said, asset based financing is certainly a big one, but also private credit more broadly, hedge funds, insurance and pension funds, CLO managers, secondary markets trading and also hopping over the the issuer side. Obviously depends on asset class. If you're doing auto abs exit opps look different from rmbs, where you might be going to a real estate fund (think pretium). It's very niche and very technical, imo thats a good thing.
As to modeling skills, this is probably one of the more technical areas in ib/structuring. Not as technical as rates derivatives obviously, but there's a lot of nuance and room to develop expertise.
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