Are real estate Originations groups at top BBs considered "Investment Banking"?

Tego987's picture
Rank: Baboon | 153

I've heard from a few individuals at top BBs in Originations of Structured products like CMBS, RMBS, and even ABS, that the work is much more "banking" than it is S&T. Would an Originations role qualift as IB, or would it be its own niche.

Also, if anyone has any color on this, would an Originations role result in future exit ops in trading/sales of the same product at the same firm?

Comments (7)

Jan 23, 2019

CMBS is typically within the investment bank. It isn't what most people are referring to when they discuss investment banking though.

Jan 23, 2019

I see. My questions becomes this, then, if CMBS Originations is within the Markets side of the business, but the primary function of the Originations team at a BB is to pitch issuers and ratings agencies, while structuring the deal, does not it not function like a quasi-ECM/DCM role but simply with Real Estate assets?

I may be totally way off, so any further color on this is really appreciated.

Jan 23, 2019

I work in CMBS originations/structuring. Its more commercial real estate finance than investment banking. And my primary function is not to pitch issuers and rating agencies. My primary job is to bring in business, vet them, structure them accordingly so that we dont lose money. I also work with rating agencies and B buyers to make sure they treat our loans fairly. Its all pure real estate than investment banking. IMO, the investment banking side is more the secondary desk that prices bonds, goes on roadshows and pitch to investors. I work with the group closely and they sit next to me at work. They have their pulse on the market and help me price deals using appropriate break evens.

Jan 23, 2019

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