Gatekeeping
Currently an intern on a MBS/ABS trading team on the buyside. I came from a CRE investing background and I’ve been pleasantly surprised by the level of complexity and intellectual stimulation in the liquid securities space. Why do you guys gatekeep so much? Why isn’t everyone trying to do this over M&A?
Genuinely curious.
Based on the most helpful WSO content, here are some insights into why M&A is so highly sought after and why there might be a perception of gatekeeping in other areas like MBS/ABS trading:
Prestige and Compensation: M&A roles are often associated with high prestige and lucrative compensation packages. This attracts many candidates who are looking for financial rewards and recognition in their careers.
Career Opportunities: M&A experience is highly valued and can open doors to various career paths, including private equity, hedge funds, and corporate development. This versatility makes it a popular choice among finance professionals.
Skill Development: Working in M&A provides a broad set of skills, including financial modeling, valuation, negotiation, and strategic thinking. These skills are transferable and highly regarded in the finance industry.
Networking: M&A roles often involve working with high-profile clients and senior executives, providing valuable networking opportunities that can be beneficial for career advancement.
Market Perception: There is a strong market perception that M&A is a prestigious and challenging field, which can create a competitive environment and a sense of gatekeeping.
Complexity and Intellectual Stimulation: While MBS/ABS trading can be intellectually stimulating and complex, it may not have the same level of visibility and perceived prestige as M&A. This can lead to fewer people pursuing these roles, despite their potential for intellectual growth and financial rewards.
In summary, the allure of M&A lies in its prestige, compensation, career opportunities, skill development, and networking potential. These factors contribute to its popularity and the competitive nature of the field.
Sources: If there's so much academic opposition to M&A, why does it exist?, Why is literally everyone trying to get into M&A?, Am I missing something about buyside exits?, https://www.wallstreetoasis.com/forum/private-equity/why-i-left-pe-switched-to-the-public-markets?customgpt=1, Why are people so fixated on going to MF from IB?
Nobody is gatekeeping this, there is just less seats to go around (a lot of good seats exist at places that most college students have never heard of) and not constant turnover in the junior ranks like in IB. Also most college kids have no idea what they want to do so they flock to something like IB that allows you to build a general set of skills that you can transfer to a variety of options. Working as a trader on the buyside or sell side does not exactly build a broad skillset that you can apply in other corporate roles.
what makes you say trading doesn't give you a broad skillset? Not questioning you but curious to get your opinion because I was under the impression that trading is an intellectually stimulating career which would translate well to other roles?
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