Structured Finance outlook and exit opportunities
I have a great opportunity to join a ABS or CLO origination/structuring team at a BB, and it seems like a very interesting role. Seems like hours are less than traditional IB, and pay is similar at the analyst level.
However, I am wondering about exit opps for a role like this, as well as the industry outlook. I would really appreciate any insight from anyone who has works or has worked in structured finance before.
Thanks!
There are several firms and funds that are in the structured products space. PIMCO, Wellington, PGIM, Nuveen, Metlife IM are the larger AMs heavily involved in certain asset classes here. Those are some of the biggest ones. And there are several credit-focused hedge funds to choose from. Coming from a Securitized products origination/structuring/trading background makes you a strong candidate without the same “ratio” of exit ops/competition. Sure there are fewer seats since it’s a niche industry, but there’s even far fewer competition you’ll be going up against. As the above poster said, any meaningful pension fund, endowment, or insurance company would want your skillset. But asset management, and financial CIOs (especially banks’ buyside desks), want you on their team as well. Think about CVC, GoldenTree, OakTree, Mariner, DK, Cerberus, Guggenheim, Och-ziff, etc.
I would say origination/structuring are more marketable than trading but depends the exact capacity you’ll be acting in.
Bro structured products seats make bank. You definitely get pigeon-holed but there will be like 20 people in the US who can actually do your job so you will have virtually no competition when jumping. As for exits ops - all the AM’s deal in structured products, and there are specific HF’s that deal too (Element, Millennium off the top of my head). You could always be a CLO manager as well (these seats are GOLD, you will make bank) or transition into FI research. I would take this gig, and never look back