What is it like being an asset manager at a bank?
Specifically asset managing CRE loans. What’s the day to day? Is it analytical or pretty boring? What is the typical compensation structure in a HCOL area?
Based on the most helpful WSO content, asset management for CRE loans at a bank involves overseeing the performance of the loans and ensuring they meet the bank's expectations. The day-to-day can include monitoring loan performance, analyzing financial statements, tracking property performance, and ensuring compliance with loan covenants. It can also involve working with borrowers to address issues or restructure loans if necessary.
The role is analytical to an extent, as it requires reviewing financial data and market trends, but it can become repetitive depending on the portfolio size and complexity. Some professionals find it engaging due to the problem-solving aspect, while others may find it less dynamic compared to other roles in CRE.
In terms of compensation, for a high-cost-of-living (HCOL) area, the pay can vary widely based on experience and the size of the bank. For example, analysts in CRE lending typically start with a base salary of $60-75k, and as they progress to roles like Relationship Manager or VP, compensation can range from $140k to $300k or more, including bonuses.
Sources: https://www.wallstreetoasis.com/forum/other/commercial-banking-relationship-manager?customgpt=1, What is your compensation in Real Estate Finance?, CLO Asset Manager, Q&A: Non-Bank Commercial Lending, Credit Hedge Fund opportunities
Debt AM is typically a lot of rinse and repeat reporting, draw review, P&I statements, etc. You're not intimately involved in the business plan creation and execution you're basically just monitoring from the sky and making sure they're paying the monthly statement and not breaking any covenants. I would not recommend.
I’m looking for an AM role where I’m actively involved in loan restructuring/workouts and REO asset management. Would that be under a debt AM umbrella?
Theoretically yes but a lot of the times they'll be specific with hiring for that team. And its entirely dependent on the bank and its portfolio. Ie if they make a bunch of good performing loans the REO side won't have a lot going on. If I were you I would target Rialto as they are always hiring for the special sits/workout team and they go out of their way to buy non-performing loans and work them out. There's currently 3 postings on Select Leaders for that team.
One of the most boring and least impactful jobs in CRE, but can be a stepping stone to the sales side which is much more interesting and pays better. Comp probably averages 125k including bonus and tops out at around 200k at the largest banks.
Your comp statement is inaccurate. There's too much variation across bank size and location, not to mention level (analyst to SVP), to even make discussing that worthwhile unless you dial in more specifically. Topping out at 200k all in at the largest banks is simply inaccurate. I know a VP in non-HCOL area (more like MCOL definitely not upper tier/H) making over 200k all in.
It is VERY boring and only becomes exciting when things go wrong and you are doing a workout or modifying the loan. But even then, most mods are tedious. Your main tasks are underwriting existing deals to identify future risks and to make sure that they will cover debt service above their covenants.
Overall, it is not very analytical as you follow processes for everything. Workouts will be analytical as you make a bunch of different scenarios but hopefully you aren’t doing a ton of them.
Comp is pretty good at my bank ($125-130k almost 3 years out of college MCOL city) and WLB is nice overall.
I’ve done both equity and debt AM, and the comments here are spot on when describing debt AM work, areas of responsibility, etc.
I will interject that if you are indeed looking for a slower pace, etc, a debt AM job at a bank would (based on what my network tells me) be pretty laid back and WLB would be good. That may be the trade off you make for having a more remote, “boring” relationship with the underlying real estate.
When I was a debt AM, I swam in an ocean of paperwork and process and none of my work felt like it was moving the needle aside from providing senior managers and investors with high level detail on loans we made. The organization I was with didn’t always quite know what it wanted the “scope” of its debt AM to be. Granular detail was sought constantly, but very little of the work product would be used for decision making or action.
How much and what experience did you have prior to your debt AM job? What did you do after unless you’re still currently at the role? I’d much rather work Debt AM at a private credit shop rather than a bank as I expect that work to be more analytical and more involved with the real estate.
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