securitized credit desks
Barclays, BofA, and CS have traditionally been the ” strongest” securitized desks, maybe throw GS in there as well. I'm wondering if there are some banks that focus more on churning volume in these products (hence their status as ”good”) versus other banks that focus more on finding good opportunities across the cap structures of these products and making concentrated bets.
I'm guessing every bank will do a little of both, but the focus at each shop might be on one or the other. Interested to know which banks fall into each category.
By securitized credit I mean clo, rmbs, cmbs, abs. Not corporate credit derivatives
None of those firms take "bets" on their securitized products. They originate to distribute. PM me if you want to talk specifics about securitized products.
They do take positions in their structured credit operations. Are you referring to this?
I'm actually interested in this too. How does one break in out of , say , Business School?
Find people in the field, let them know that you're interested, and go from there. That said, within DCM/Securitized Products, firms tend to promote Analysts to Associates more often than in IBD, and this is partly due to the MBA just not being of as much value to them, as, say, coverage bankers.
There is no reason for a bank to take positions on a CLO, since they originate the underlying leveraged loans. If they want that exposure, they just hold some of those loans. In terms of the other stuff, I'm sure a CIO will include ABS in their strategy, but I don't think what you're talking about -- these desks taking prop positions -- is happening at any meaningful scale. They do make great money making markets in these products.
Hi, yes I was referring to taking positions in their structured (securitized?) credit books. For example digging through the collateral etc. looking for good opportunities, with the end goal of buying a certain CLO or tranche which is attractive. The flipside to that would be focusing on the origination/distribution, which is what i meant by churning volume. I expect most banks do a bit of both, but was curious to see which banks focus more on each area respectively.
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