CMBS / Investment management??

Hey guys,

I was wondering if anyone has any experience working in the investment management arm of a real estate finance company (like a Torchlight, CWCapital, Ladder Capital, etc)? I'm particularly interesting in what its like managing a portfolio of CMBS, CRE CDO's, etc.

What sort of background do these type of firms look for in potential analysts? I'm currently working at a rating agency in the CMBS New Issuance Group, and was wondering if that would help me get my foot in the door. Thanks!

3 Comments
 

Ive seen people enter that field from BB mortgage groups, structured products, leveraged finance, RE IB, etc. Really anyone that has exposure to or experience with underwriting and analyzing real estate assets. I suspect that you could possibly leverage your rating agency experience but I am sure others on the board would have better insight on this point. Have you been busy? I know that there has been a slight uptick in CMBS volume but that market has essentially been dead since the good old days in 2005.

 

I work in the investment mngmt arm of a similar real estate finance company (B-piece investor/Special Servicer). Managing a portfolio of CMBS is mainly monitoring the deals for credit events (i.e. term or maturity default) focuings on certain metrics (low DSCR, low DY, occ 80%, declining tenant sales, major tenant rollover, IO period ending etc). Projecting potential losses and default timing is also necessary to value seasoned bonds when they come to market.

In reference to getting your foot in the door, I have to agree with junkbondswap. It's a pretty niche field so anyone with structured finance, CRE valuation, RE IB, rating agency experience etc. can help add value and develop the necessary credit view. Lemme know if you have any other questions.

 

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