Hey guys,
Just wanted to share my personal experience as an intern within Securitization for a few months. Headed into the internship not really knowing anything about it, but left holding the group in high regards.
For those of you who don't know, securitization is where asset-backed securities are structured, typically from things like auto loans, credit card receivables, or mortgages. Yes, relevant group for the housing market and crash from approx. 10 years ago.
To cut to the good stuff:
- Hours are FAR less than M&A or other areas of IB. Working 10.5-12 hours a day is the norm, occasionally having to put in a couple hours extra.
- Pay is typically in line with DCM, which is typically in line with IB (or just a slight paycut)
- Much more modeling than DCM due to needing to understand the underlying assets and performance of those assets
- Market is smaller than traditional DCM, typically means smaller team and flatter structure
For those of you who like a mixture of following the markets as well as modeling, this might just be the group for you. Given how little you hear about this group, if you were to reach out and network, you would likely have a much larger chance at success if you actually do your research and show up prepared.
Work at the analyst level is very similar to the other groups - pitching, research, pitching, comps, analysis, and pitching some more. Many people from my group have put 1-2 years in and leveraged the experience to end up elsewhere, so you're definitely not pigeon-holed.
Just wanted to get this out there for those of you who maybe haven't heard of some of the more niche groups within IB. Glad to answer any questions that anyone may have.
Know what a True sale is, bond math, expected values, why companies choose the off balance sheet option.. all basic stuff. I wouldn't expect any technicals, you're interviewing for a markets role.