Esoteric ABF / ABS exit opps

Based on the most helpful WSO content, transitioning from an esoteric ABF/ABS role at a good MM (like Guggenheim, Nomura, or Stifel) to something more macro or trading-focused is possible but may require strategic positioning. Here are some insights and potential exit opportunities:

1. Macro or Trading-Based Roles

• ABS Trading or Credit Trading: Your experience in ABS/ABF can be leveraged for trading desks that focus on structured credit products. Highlight your understanding of deal structures, cash flow modeling, and market dynamics.
• Rates Trading: While less directly related, your familiarity with structured products and interest rate sensitivities could be a bridge to rates trading. Networking and demonstrating transferable skills will be key.

2. Buy-Side Opportunities

• Hedge Funds: Credit-focused hedge funds, especially those dealing with structured credit or distressed debt, may value your expertise. Funds with a macro or event-driven strategy could also be a fit.
• Asset Management: Transitioning to a role in fixed income or structured credit asset management is a natural progression. Firms managing CLOs or other structured products may align with your background.

3. Private Credit or Direct Lending

• Your experience in esoteric ABS/ABF could position you well for roles in private credit or direct lending, particularly if you’ve worked on unique asset-backed deals.

4. Securitization or Structuring Teams

• If you’re open to staying within structured finance, moving to a larger BB securitization or structuring team could provide broader exposure and potentially lead to trading or macro roles later.

5. Consulting or Advisory

• Firms like Big 4 transaction advisory or boutique consulting firms specializing in structured finance could be an option. This could also serve as a stepping stone to other roles.

Tips for Transition:

• Networking: Build connections with professionals in your target roles. Attend industry events and leverage alumni networks.
• Skill Development: Gain exposure to trading concepts, macroeconomic analysis, or programming (Python, VBA) to enhance your appeal for trading or macro roles.
• Internal Mobility: Explore opportunities within your current firm to transition to trading desks or macro-focused teams.

While the transition may not be straightforward, your specialized knowledge in esoteric ABS/ABF can be a strong foundation for pivoting into these areas.

Sources: Role of Quants in Credit Investing/ Trading: ABS, Structured Credit, Corporate Loans, IB Good Exits - Not so much, Q&A: First year macro hedge fund analyst, Q&A: Big Four Valuation Associate - Deciding Whether This Job Is Right For You