Working in structured finance groups (like Structured Credit Trading, CDO Securitization at Goldman) was probably one of the most lucrative IB positions pre-crisis at the junior and senior levels (idk if still true). I'm hoping this can be a small Structured Finance Thread. Most people on WSO are corporate finance monkeys and it's extremely rare to find recent grads going into structured finance (I don't think I have even seen one on linkedin). I've always been really curious about structured finance but all i hear is M&A, M&A, and M&A. If you are part of the rare breed of structured monkeys, can you talk a bit about what exactly you do, your background, and current prospects of this sector. Even if u are not one but have insights on structured finance, please reply and offer up some knowledge.
Thank you!
Not totally relevant but I know someone who's working in ABS securitization @ PNC. Apparently one of the top groups w/ comparably better work-life balance and great comp.
Oh interesting! How recently did he join the group and did he have a quantitative academic background?
I probably wouldn't call PNC one of the top groups.. from a league table perspective they're more like #30-40. Year to date top 5 bookrunners are Citi, BAML, JPM, Wells, CS in order.
lol this is wrong.... literally saw league tables on friday YTD
Sorry I meant @ PNC not in general
In structured finance here
Nice! What do you think the current state of structured finance - compensation wise, activity, exit opps, future prospects? What's the the typical background of someone in structured finance? Thanks
comp - similar to IB at junior level, maybe a 10-15% (bonus) haircut. analyst salary is the same, associate base is 25k lower at each level.
exit opps - depends on role, but have seen people moving to ABS focused hedge funds
future prospects - depends on vertical within structured finance but seems fine. many securitization marks are mature now. as mentioned elsewhere you are seeing more esoteric deals coming to market.
background - nothing specific from what I notice. just has to deal more with interest/placement. i've seen people go to M&A and people coming to structured finance from coverage groups.
Seems like its just Quants and corporate finance now. I go to H/Y/P/S (studying a math field), and haven't heard of many guys goin into structured finance tbh.
Was in structured finance for a hot second on the IB side. The deal sizes are very large but the fees are a much smaller % of the deal. Hours aren't horrible, but they're not great either. Definitely better than some other groups tho. Comp was okay, street level, but bonuses aren't the highest in this field. Overall not a bad gig, and still making much more $ than the average american. Exits would likely be to credit funds, alternative data funds, abs funds etc. as you do tend to develop a more quanty skillset on the job since for ABSs you've to run regression/simulation models for performance, run analytics/statistics on certain groups defaulting/prepaying etc.
Working in structured finance
Hours: 60-70hrs avg Deal Flow: A lot of recurring issuances Thoughts on Industry: Starting to bring back a lot of experimental stuff that loss popularity post 07
Awesome! What's compensation like (not you specifically but the industry in general compared to traditional IB M&A type stuff)? Also, how are exit opps?
Similar to structuring at IB, I was offered a position at a big 4 in TAS, specifically in restructuring. But it didn't seem like what I wanted to do, because IB was my end goal.
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I'm a first year analyst. Lots of deals right now. I was math & finance undergrad
Oh cool! What's your ultimate goal/exit opp? Also, how are you finding the work - is it also pretty shitty like M&A groups at junior levels?
joining structured finance group in the next few days, one of the most profitable groups at my bank and is def a place with lots of growth. We're a small team so i'm not sure where people get the idea there's good work life balance. It's probably not as bad as M&A, as a SA I worked consistently 9-12ish and part of the weekend. Comp is good though, from what i've heard.
My background is econ undergrad
Not directly in structured finance but interact with the asset class a lot and there is a structured finance investment team at my shop. My question is really how do those who work in structured finance view how transferable their skill set is? It seems very narrow and completely levered to some other underlying asset class (i.e. real estate, corporate credit, etc.).
Buyside analyst in SP who frequently has similar thoughts running through the head.. Ops are somewhat limited... but the skillset acquired is relatively unique so hopefully a smaller pool and less fish kinda thing... time will tell
Any resources for learning cash flow modelling (and whatever else might be relevant for SP buyside? I'm an An1 in Securitization on the Origination side (don't have a math/programming background) and am quickly realizing there are no transferrable skills (i.e. the transferrable skills belong to the Structuring team). I'd like to jump over to the buyside in SP and unfortunately can't find any online courses/tutorials about Intex or cash flow modelling/structuring
Definitely cooler things than the run of the mill LBO, IMO. More data intensive than spreading financials. Can help answer any questions related to structured credit (ABS/CLO)
Hey was wondering if you would still be willing to answer some questions / could I PM you?
Let 'em rip or post on here for everyone
Hi!I worked in small advisory company in securitization department, but did other modeling for consumer sector and tech. Bank(FIG) group may be interested(i was proposed by fig group coverage) as it required understanding how bank works, but don't stay for too long.
I'm in structured credit, working with CLOs. Structured is known as more quantitative based. Deal with a lot of legal language indentures. Issuance has exploded recently as demand for floating paper has increased. As far as transferable skills go I think it is a bit niche.
Incoming IB SA but have always thought structured finance was interesting. Any thoughts on what I should read/follow to see get more in-depth knowledge and see if it would potentially make sense to make a switch?
How did people go about recruiting for structured finance?
PM me
Would be interested to hear from anyone that has securitized/structured Income Share Agreements
I'm joining a CLO structuring team at MM European Bank this summer. Strong deal flow(top5 or near top 5 in league tables), great tight-knit team with a very collaborative culture. Studied stats/econ in college at a non-target. I think its a super exciting time to be joining this business, its has been a record past couple years for issuance here in the US and the European market still has so much room to grow. I make us much as my counterparts on the banking side and those in a more pure S&T role and as far as I know hours are definitely less than you would see in M&A but more than you would in a typical sales role.
I’m at a BB (top 1/2 on the league tables for my asset class) working in Securitized Products banking. Happy to answer questions
What is the total comp like for a first year analyst?
I joined as a second year analyst. Base pay is 90k, not sure about bonus. Check in with me in 6 months!
Just started in IBD Structured Finance group at top 3 BB, within the Corporates vertical, will be focusing on esoteric financings for corporates and projects in various industries. Haven't hit the desk yet so happy to provide more color in a few weeks.
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