Securitized Products Group
By a series of random events, I've made contact with someone in a Securitized Products Group. I'm not too familiar with the all the classifications, so the question is: Is this group under I-banking? S&T? Retail banking?
Any other information would be appreciated as well.
It is most certainly NOT retail banking. Which bank? Generally speaking, securitization is a capital markets product, so it depends on how a bank defines it groups to determine which one it technically is.
it is under sales and trading at most banks, however they do often work closely with bankers
Even though most firms place it under S&T, the actual function is more similar to a banking group, since their transactions are completely deal-oriented (the securitization/structuring side). Moreover, deals take at least a month to close and members of the group go on roadshows to market their securities, in addition to other banking function similarities.
I guess the argument for having it under S&T is that they are creating and issuing new derivative securities (which is more a cap markets role) and they also need to be pretty aware of what's happening in markets (i.e. what spreads the secondary market is pricing tranches at to properly model the structures they create).
There is the secondary market trading side of it as well - where that falls is obvious.
Hm! I am also very interested in a Securitised Products Group. Would moving from trading (commodity derivatives) into a securitised products group be difficult, or are they at least somewhat related? Would it be easier to go from exotics trading to SPG? Or maybe structuring to SPG?
Nauru, you can make more as a trader. People are more likely to go from securitized products into trading than the other way around because traders can earn gigantic bonuses.
Mark, I realize that traders (generally) have higher earning potential. But I have a keen interest in certain groups within securitized products. Actually, the main reason I'm doing trading is because the director thinks that's where I fit best; I personally would be more interested in structuring or securitized products. beyond a certain minimum, salary isn't a huge motivator for me. Type of work is more important.
isnt this market dead?
Some of it will rebound. For corporates, it really is an efficient way to raise capital. And for mortgages where due dil is done from the ground up, it provides a lot of liquidity to the market.
I guess it shows that supply-side economics really can work though...
is the securitization market still around and kicking? if so what sort of work do they do now? are salaries still where they were?
SPGs are still very much around and kicking. Still split between the public-side sales/trading desks and the private-side banking groups that originate the securities, usually both orged under S&T. Still very active in C/RMBS, ABS markets. Although not nearly at the levels they used to be, definitely on a moderate upswing right now.
Lots more credit enhancement gets built in though, lots more overcollateralization. The risk people (internal and external) are a lot more conservative with their ratings. Lots of action in both term and conduit financing, good dealflow at BAML, JPM, BarCap right now at least for ABS. Not sure about CMBS/RMBS but you can check Deals Intelligence for the figures.
Structured financing remains a great way for sub-A rated companies to get Aa2/better interest rates based on the creditworthiness of their obligors. The SPVs are bankruptcy remote and concentration requirements mean that several large obligors would have to simultaneously shit the bed for the deal to enter rapid amort. I think there will always be a place for these securities, they seem like a pretty legit deal now that corps, banks, and buyside understands them better.
I would very much like to know what bonuses are like on the banking side of SPG groups.
if the group is under the capital markets heading would the hours reflect CM (eg get in by 7 leave by 7 usually) or ibd?
Hours are no where near as bad as IB hours; probably in between S&T hours and IB hours. As an analyst, you're probably going to be getting in between 8 and 8:30 and on most days you'll probably be out of the office by 8-9, maybe 10. Of course if you have a deal coming up soon, the hours can add up pretty quickly, but even then I would say all nighters are pretty rare. All things considered, not a bad place to be if you enjoy securitization.
downtown so I guess the question is... will i like it? I understand the basic concepts behind it, but does it lack the excitement of S&T and the exit ops of IBD?
That's a pretty good way of putting it. The exit opps are basically S&T and IBD.
You guys are dead wrong about the hours BTW. Maybe a little less than banking but all-nighters happen (with less regularity), it's not uncommon to pull 20 hour days during closing, and the idea that you get out by 10PM with any regularity is ludicrous.
That's why I really need to know what typical analyst bonuses are for SPGers... I don't want to find out after I start FT that I'm getting $70+35 and the bankers that worked SLIGHTLY fewer hours and performed substantially similar work got $70+60.
Sounds like MS: http://www.morganstanley.com/institutional/invest_bank/corporate_adviso… credit and market risks.
Securitized Products Group The Securitized Products Group (SPG) engages in a wide array of activities that include structuring, underwriting, and trading collateralized securities across the globe. SPG makes active markets and takes proprietary positions in the full range of asset-backed, residential mortgage-backed, commercial-backed and collateralized debt obligation securities in both the cash and synthetic markets. In addition, SPG originates commercial mortgage and single-family loans through conduit and loan purchase activities, and advises clients on securitization opportunities. Bringing together Morgan Stanley's Fixed Income and Investment Banking divisions, SPG draws on their expertise in finance, capital markets, trading and research to give clients the best of securitization finance.
I agree Cube. on my 2nd round now, meeting with MD and need to know that I won't be walking into banking hours/schedule with less bonus
Securitized Products (Originally Posted: 03/02/2012)
Coming up on 2 years since graduation. Been working in an unrelated field. Can't really disclose doing what but it involves sales/marketing/account management skills. Good fit for me but, frankly, doesn't pay to well at all.
Through some very close contacts (plus I'd like to think I have a strong and interesting resume) I was able to get a couple interviews at BB in 2 different groups-- one of which is securitized products/ABS. That interview went very well. I have a good grasp on the group itself but my question is about bigger picture: It pains me to say this but I don't know exactly what I want to do long-term. I just know what I'm good at (relationships, well rounded type more than strictly quant/interpersonal) and the type of living I want to make. For someone who isn't deadset on this career, do you think this field is too narrow and specialized? Any opinions on the future of this industry? Should I take this opportunity to get in the street? Obviously I'm jumping the gun since I don't have the offer but I wanted to start getting opinions.
Any guidance is welcomed. Thank you guys.
What is the job withing the group? Is it a sales/trading role? Structuring role? Back Office? A little more info on the group will be able to shed light on exit ops, career movement etc
Bobb - It's for a structuring/origination role. From what I gather in meeting the team, it's very similar to banking in terms of job function and culture. If I were to end up taking the job and liking it I have no problem working long hours. My main concern is switching careers, hating the work, and then having no exits ops within wall street or a different industry. Seems like a good opportunity but still a little nervous to go for it and being "stuck."
Eagle,
Would you mind sharing some of the interview questions they asked you for the position? Was it technical or more fit based? Are you working in the position now?
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