Securitized Products Investment Banking
I’m looking for insight on the best banks that work in Asset Securitization / ABS. How are the hours? How is compensation? What do exit opportunities typically look like?
I’m currently interviewing with the Truist Asset Securitization Group, so any insight on that team specifically would be especially helpful.
Based on the most helpful WSO content, here’s what you need to know about securitization and asset-backed securities (ABS) in investment banking:
Securitization Overview
Securitization involves structuring asset-backed securities, typically from assets like auto loans, credit card receivables, or mortgages. It’s a niche area within investment banking that gained significant attention during the housing market crash.
Hours
Securitization groups generally have better hours compared to M&A or other high-intensity groups. While still demanding, the workload is often more predictable, making it a more balanced option for those seeking a less grueling schedule.
Compensation
Compensation in securitization is competitive but may not always match the top-tier pay in M&A or private equity-focused groups. However, it’s still a lucrative field, especially for those who value work-life balance.
Exit Opportunities
Exit opportunities for securitization professionals can be diverse: - Credit Investing/Trading: Many move into roles focused on ABS, structured credit, or corporate loans. - Hedge Funds and Asset Managers: Firms like Oaktree, Ares, and Anchorage often value the skill set developed in securitization. - Private Equity: While less common than M&A, some professionals transition to PE roles, particularly in credit-focused or asset-heavy funds.
Truist Asset Securitization Group
Truist is actively building out its investment banking capabilities, including its securitization group. They’ve been hiring senior bankers aggressively, which suggests a growth-oriented strategy. However, there’s some commentary about conflicting decisions within the firm, such as spending heavily on senior hires while potentially cutting costs elsewhere. This could impact team dynamics and stability, so it’s worth probing during your interviews.
If you’re considering Truist, it’s a good sign that they’re investing in the group, but you should clarify their long-term vision and how they plan to support junior talent.
Sources: Securitization - The hidden gem of IB?, Securitization - The hidden gem of IB?, Truist’s Strengths in IB?, Truist: Sweatier Than Ever In 2023
bump. Also did you hear any insights on this yet?
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PM
Best banks are JPM, BofA, Citi, Goldman, and Wells if you go by mandates. It all depends on what you're securitizing though.
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Citi is absolutely an auto flow shop. Goldman is the only shop which does interesting deals and pump volume. Go to Guggenheim if you want to work on the weird deals.
Truist built up their esoteric ABS franchise from scratch a few years ago and is quite strong in the space. Smart folks and interesting work. The product(s) you work on is more important than brand name here. At a WF / JPM etc. you’re primarily just securitizing AAA prime auto and the likes (boring).
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