Goldman Sachs Mortgage Finance/Investing ??


Hi. I have a final round wiht GS Mortgage Finance/Investing. I'm a bit confused as to where exactly summer analyst are placed because the division seems to run all over the place. "The desks involved in the placed program are:
- ABS Finance
- Advisory
- Americas Special Situations Group (AmSSG)
- Global Commodities Principal Investments
- High Yield Distressed Investing
- Bank Loan Distressed Investing
- Money Market Origination Group
- Residential Whole Loan Finance
- Reinsurance Group."

I know some of the desks are very good, such as SSG and GCPI, but besides that, there's also liek money market origination and reinsurance, not to mention residential loan finance... has anyone had an interview wiht them or can shed some light as to the perception of this group as a whole? Also, if I get the offer, I don't want to sign on as a loan financer, then get my job cut in a couple of years. Is this group worth taking over a normal front office position, say Citi or ML IBD? It has the GOldman name, but I'm not too sure I want to be involved with the subprime mess. Thanks

Comments (6)

Jan 19, 2008 - 1:22pm

- ABS Finance - do not go unless you are on the more esoteric / energy side
- Advisory - IBD for credit card and mortgage companies...good skillset
- Americas Special Situations Group (AmSSG) - best in class, if you get this go there
- Global Commodities Principal Investments - same as above, best in class similar work focused on energy
- GSPS - same as SSG, but more of a traditional equity / hedge fund strategy - equally as good as SSG
- High Yield Distressed Investing- good opportunity
- Bank Loan Distressed Investing - good opportunity
- Money Market Origination Group - do not go
- Residential Whole Loan Finance - do not go
- Reinsurance Group." - good opportunity if you like acturial type stuff / CDS

-pm me if you have any questions, I work in Mortgage Finance / Investing.

Best Regards

Jan 19, 2008 - 6:49pm

Considering we're in a recession right now and I'm working with clients looking to invest in a recessionary style of cash flow gains (think targeting growth sectors, defensives, long term strategies, options overlays with a bearish view), if you can, consider trying to get placed on a distressed debt desk. While I'm not too familiar with all of the groups at Goldman, I would like to reitterate some of Remsen's points.

From my position in PMW, your best oppertunities to see serious action would be in either SLF or HY Distressed debt investing. The market, especially now, is rife with oppertunities to convert on distressed debt into profit. The skill set is also very transferable across multiple aspects of finance, from structuring to research, and it works well with trying to get into any kind of LevFin position for the full term. There are so many gems hidden in the current mess that some of the clients I work with are looking for riskier ways of generating positive returns without risking or potentially losing as much capital as they would with equity investing, especially after 11 of 16 trading days being negative. My PMW group has been working with some of our Distressed Debt and SSG in-house teams and we've been able to come up with great opertunities for our clients, both in terms of creating the situation and finding areas for investment. It's a great place to be in a recession.

In terms of the other groups, SSG is always a good choice. The same can be said GCPI and GSPS. The skills you get with SSG will be transferable, just like HY/SLF Distressed, and GCPI and GSPS are interesting if you ask me. Then again, I happen to believe in using comodities as a non-correlated asset class to help maximize diversification is a great way to help raise the excess returns while reducing risk exposure and volatility in certain segments of the investment market.

As far as ABS Finance, Advisory, Origination, Res. Loan Finance and Reinsurance, I don't know much about three of the five, of the two, origination is a godawful area to be in right now. Basically, origination is looking for people to give loans to. I'm not 100% sure as to how it would apply to an MMF, as, from what I can tell based around general office chatter, are moving towards a much less risky MMF structure consisting of GO, Repo and T-Bill positions. Res. Loan will be the same thing, origination of loans, which sucks. Don't do it.

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