Trading Primary Market

Based on the most helpful WSO content, here’s what you need to know about trading in the primary market, particularly for RMBS, ABS, and CMBS transactions:

1. Lifestyle:

   • Primary market trading roles, especially in structured products like RMBS, ABS, and CMBS, tend to be fast-paced and deal-heavy.
   • The lifestyle can vary depending on the bank and the specific desk, but expect long hours, especially during deal execution periods.
   • The role involves significant interaction with syndicate teams, issuers, and investors, requiring strong communication and relationship management skills.

2. Compensation:

   • Compensation in these roles is generally competitive, with a mix of base salary and performance-based bonuses.
   • While exact figures can vary, structured product desks often offer higher compensation compared to more "vanilla" trading roles due to the complexity and technical nature of the products.

3. Exit Opportunities:

   • Exit opportunities for primary market traders in RMBS, ABS, and CMBS include roles in:
     • Securitization teams at funds or banks.
     • Credit trading desks, leveraging expertise in structured credit.
     • Real Estate Private Equity (REPE) or Asset Management, especially for those with CMBS experience.
     • Capital markets roles at real estate or financial institutions.
   • The technical and quantitative skills developed in these roles are highly transferable, making transitions to other areas of finance feasible.

If you’re considering this path, it’s worth noting that the technical and quantitative nature of the work can be demanding, but it also provides a strong foundation for future career moves.

Sources: https://www.wallstreetoasis.com/forum/other/commercial-banking-relationship-manager?customgpt=1, BB Debt Capital Markets - Exit Opps / Comp, CMBS Exit Opportunities?, BB Debt Capital Markets - Exit Opps / Comp, 2020: Real Estate Bonuses