Mortgaged Backed Depts.
What department within I-banks is responsible for engineering the structured products (passthroughs, CMO's) created from mortgages?
What department within I-banks is responsible for engineering the structured products (passthroughs, CMO's) created from mortgages?
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structuring, which falls under 'capital markets.'
Do these individuals (structuring) make good money as well (in comparison to M&A)?
since when are passthroughs "structured"? that's almost as flow as it gets.
What am I missing?
They are structured because you create different classes of risk/return, different payouts ways, etc. It is a passthrough but not a simple, clear cut passthrough. HTFH ywia
What is going to happen to these groups now? MBS securitization isn't happening now and clearly the deal flow of the past few years will probably never be realized again, but the "idea" of MBS' is still solid - they just need to be priced in a different way so that buyers will feel comfortable buying them. I have the opportunity to join a MBS desk - is this a horrible idea, even if I'm looking 2-3 yrs out?
If you read up about MBS and how they are created by private-label institutions, they have a variety of ways to manipulate and alter the risk of the investments with regards to the residual, tranching, etc.
I can't speak, nor will I give advice on your opportunity though, as I don't know the details.
Call up the bank and ask them about all the concerns you have, prior to taking the job.
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