Monkeys,
I accepted a FT offer as an analyst in CMBS after graduation and was curious to know what exit opps I can take 2-3 years down the line. On a day to day basis, I'll be working on pricing, trading, securitization, and distro. Ideally, I'd like to go to the buyside (REPE/Infra PE/CMBS focused hedge fund). How would I go about breaking in - do I take the head hunter/networking route? What skills do I need, and how would you recommend obtaining said skills? Would another degree after my analyst stint (MBA in RE/Finance or MS in Fin Engineering) help? To provide some more context, the group works on a ton of deals for REPE MFs.
Any insight is appreciated!
Great thing about CMBS is the amount of volume. REPE / Development doesn't have a fraction of the volume. You'll see a ton of deals and meet a ton of people. Best thing to do is use the deal volume to build your network and if you are competent you'll be able to easily transition. That's where I started.
Agreed on this. I see so many people move from CMBS to other loan types, asset mgmt, securitization or REPE (a bit less common, but doesnt mean it cant be done)
Ill go against the trend and say exit opps are limited in CMBS - the most i see folks doing is going into debt funds, but even that is difficult without some sort of solid connection.
It is true that a good number folks go do a number of RE-related things are doing CMBS Underwriting/Origination, but that is usually due to family connections or what not - this is really just based on what I have seen.
From my experience, the guys in securitization found their skill set to be virtually non-transferable. Everyone that left went to do the same things the guys in originations did, except they didn't have a client book or solid relationships. Junior level securitization guys mostly fix the origination guys underwriting to conform to rating agency standards and help put together the prospectus. Not much structuring until you get to senior level.
Also, sec. guys don't arb. the traders arb.
Not sure about the CMBS part, but I'll state the obvious that an MBA would certainly help you pivot to something different like the buyside.
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