Long story short I'm in RE financing and it's ok but would rather deal with securities (MBS) and macroeconomics (rates). Not a fan of being in the weeds of legal agreements and dealing with 99.99% unstructured data (I briefly worked in MBS and missed being able to at least get part of my work done in SQL/Python). Lots of exits to ER/IB/Corp Fin from my department but I don't think that's my thing.
My thinking is I first try to pivot from REF to CMBS, where asset level knowledge is an advantage. In particular non-agency, single-asset-single-borrower, etc. Then pivot to Agency or some other role that focuses more on trading the MBS as if they were just bonds and/or those rare roles that MBS-jobs but involve rate derivatives.
Are there any alternative paths (or improvements to the above) I can take to end up in a career that's more focused on macroeconomics? And as a bonus, one that leans quantitative?
To transition from a Real Estate Financing (REF) background to a macro-focused, quantitative career, particularly in MBS and rates, here's a structured approach based on the most helpful WSO content:
Leverage Your Asset-Level Knowledge in CMBS: Your idea of pivoting to CMBS is solid. Non-agency CMBS, especially single-asset-single-borrower deals, will allow you to build expertise in structured products while still utilizing your real estate background. This is a natural stepping stone to roles that involve trading or analyzing MBS as securities.
Target Agency MBS or Fixed Income Research Roles: Once in CMBS, aim for roles in Agency MBS or broader fixed income research. These roles often require understanding macroeconomic factors like interest rates, prepayment risks, and credit spreads, which align with your macro interests.
Develop Quantitative Skills: To lean more quantitative, focus on building strong programming skills in Python, R, or SQL, and gain familiarity with statistical modeling and time series analysis. These skills are highly valued in MBS trading, research, and rate derivatives roles.
Explore Rate Derivatives and Macro Research: After gaining experience in MBS, look for opportunities in rate derivatives or macro research. These roles often sit at the intersection of quantitative analysis and macroeconomics, requiring a deep understanding of rates markets and their drivers.
Alternative Pathways:
Education and Certifications: If needed, consider pursuing a master's in financial engineering, quantitative finance, or a CFA designation to bolster your credentials and signal your commitment to a macro/quantitative career.
Networking and Mentorship: Leverage your current network and actively seek mentors in the MBS and rates space. Attend industry events, connect with professionals on LinkedIn, and engage in forums like WSO to gain insights and opportunities.
By following this path, you can gradually transition from REF to a macro-focused, quantitative career while leveraging your existing expertise and building new skills.
Sources: Q&A: Rates & Macro Research/Strategy - Career Path, Technical Topics, Education, etc., https://www.wallstreetoasis.com/forum/trading/qa-quantitative-analysttrader-career-path-technical-topics-education?customgpt=1, Real Estate Q&A, Transition from RE Development to REPE, https://www.wallstreetoasis.com/forum/trading/qa-senior-financial-services-executive-fixed-income-equities?customgpt=1
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