ABS Origination -JPM

Ah, diving into the ABS Structuring & Origination group at JPM as a Summer Analyst, are we? That's a fantastic leap from Asset & Wealth Management! Let's peel this banana and see what insights we can find based on the most helpful WSO content.

Exit Opportunities/Career Development

• Private Credit and Securitization: Your experience in ABS (Asset-Backed Securities) could pave the way to roles in private credit firms or securitization teams in other financial institutions. The skills you'll develop are highly transferable.
• Investment Banking to Capital Markets: Given the structured nature of ABS, moving into broader capital markets roles or even transitioning into investment banking teams that focus on debt offerings could be a smooth ride.
• Portfolio Management: With a solid understanding of structured products, transitioning into portfolio management, especially within funds that focus on fixed income or structured credit, could be a natural progression.

Compensation

• Competitive with IB: While the hours might be slightly better, the compensation at the analyst level in ABS Origination and Structuring is competitive with traditional investment banking roles. Bonuses might vary based on deal flow and individual performance.

General Responsibilities

• Deal Structuring: You'll be involved in the nitty-gritty of structuring deals, which includes designing the framework for ABS transactions.
• Market Analysis: Expect to dive deep into market trends, analyzing which asset classes are hot and how they can be securitized.
• Client Interaction: Even as an analyst, you'll get some exposure to clients, helping to pitch structures or assist in the origination process.

Tips to Prepare for the Internship

• Brush Up on Financial Modeling: ABS deals involve complex modeling. Familiarize yourself with the basics of cash flow modeling and how different scenarios affect the structure.
• Understand the Market: Start following the markets for different asset classes that can be securitized (auto loans, credit card receivables, etc.). Understanding the broader economic factors that influence these markets will be crucial.
• Network: Reach out to current and former members of your team. They can provide invaluable insights and advice on how to succeed.
• Learn the Lingo: ABS has its own set of terminologies and acronyms. Getting comfortable with these will help you hit the ground running.

Remember, the world of ABS is both challenging and rewarding. Your background in Asset & Wealth Management will provide a solid foundation, but there's a lot to learn. Dive in with curiosity, and don't be afraid to ask questions. Good luck, and may your summer be as fruitful as a banana plantation!

Sources: 2017 Commercial/Corporate Banking Bonuses, 2017 Commercial/Corporate Banking Bonuses, Opportunity to move from NY to Europe in Structuring/Origination, Exposure&Exit opportunity JPM structured Equity Financing, Debt and Structured Finance Brokerage Exit Opps