The structured finance group revolves around consolidating cash-flow-backed loans into securities and distributing these securities to capital markets through securitization.

Benefits of Securitization

• Liquidity: By amalgamating assets and selling securities, securitization creates a more liquid market for assets that are difficult to sell on their own.
• Diversification and Risk Management: Securitization allows investors diversify through a pool, rather than a single asset; additionally, by selling assets through securitization, issuers can transfer risk to better positioned investors.
• Leverage: Securitization provides leverage for asset managers who issue the securitized products.

Within this context, bankers play a crucial role in originating and crafting new securities that they can subsequently offer to clients. The products resulting from securitization encompass collateralized loan obligations (CLOs), mortgage-backed securities (MBSs), and asset-backed securities (ABSs).

Recruiting

When it comes to recruiting for roles within this sector, candidates benefit from comprehending structured products, particularly their connection to the Global Financial Crisis, as this knowledge demonstrates a deeper understanding of the field. Additionally, candidates should be able to articulate the advantages of securitization and elucidate why asset managers and investors find these structures appealing.