Balance sheet lending to CMBS

I'm currently an analyst at the one of the largest balance sheet lenders in the country. I've been in my current position about a year and have gotten good exposure so far (~$500MM in originations, underwritten all the major product types). I recently got an opportunity to interview with another BB bank in their CMBS group doing mortgage originations. It's not through a formal process so I'm looking for some guidance on how to best prepare. I realize cmbs originations is different than traditional underwriting, I just don't know how different. Could anyone currently in CMBS opine on how transferable my skillset will be coming from a traditional balance sheet lender? Other thoughts?

 
Best Response

I would think your skill set is highly transferable. I work for a somewhat niche lender and have my own biases as a result, but all the basic vocabulary and technical skills should be the same. You can probably find certain nuances or stupidities in this type of lending that aren't elsewhere, and vice versa, but on the whole, I'd imagine underwriting a balance sheet loan isn't all that different than underwriting a conduit loan.

I would be ready to discuss what you've worked on, be able to demonstrate competency at core skills (cash flow modeling, Argus, etc.).

Do you know more specifically what you'll be doing in origination, i.e. can you provide any details from the job description? I might be able to give you more specific advice if you do.

 
Slothrop:

I would think your skill set is highly transferable. I work for a somewhat niche lender and have my own biases as a result, but all the basic vocabulary and technical skills should be the same. You can probably find certain nuances or stupidities in this type of lending that aren't elsewhere, and vice versa, but on the whole, I'd imagine underwriting a balance sheet loan isn't all that different than underwriting a conduit loan.

I would be ready to discuss what you've worked on, be able to demonstrate competency at core skills (cash flow modeling, Argus, etc.).

Do you know more specifically what you'll be doing in origination, i.e. can you provide any details from the job description? I might be able to give you more specific advice if you do.

Thanks for the response prosp and sloth. Unfortunately I don't have a job description as it's pretty informal. All I know is the group I'm speaking with does 'commercial mortgage originations', which is really not that helpful. I read through the CREFC underwriting guidelines and looked at a few term sheets issued by my bank's CMBS group but other than that I really don't know how to prepare.

On a separate note, could either of you opine on typical analyst compensation levels and bonus structure in BB cmbs origination groups?

 

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