Please shed some light on the life of a structurer

[manik]

Hi folks.
The last time I posted on QN introducing myself I got a lot of interesting responses.
I am currently doing some model/pricing implementation work, I have always had some fascination with the kind of work a structurer does.

I have picked peoples brains with whom I have worked or who are already doing some "structure support" but I would still be interested in knowing further, or as much as I can about a structurer's work.

Can anyone suggest a good document on the same.
Any comments. Would like to know a lot, what goes behind devising and selling a note (across all asset classes,hybrids,energy).
Also, which degree (MSF or MSFE) gives more to a person interested in a career as a structurer.

(please note that I am just starting to get a feel of what kind of work is currently being done at any desk where my friends work)

 

[cstassen]

I can only tell about my experiences from my current employer, it might differ other places.

structurers generally come up with trade ideas, and them try to convince sales people to pitch them to clients so they can get a share of the PnL. Sometimes they have to go with the salespeople to "be the experts" during a pitch.

Therefore, structurers can be either pretty quantitative (almost quants), and pretty sales-like. Some are in the middle, actually most are. And some quants do the same job as the more quanti structurers. So the role is pretty fluent.

the background needed therefore also depends on your role, allthough i would say that a master in finance should do it, and likewise an mfe (we even have some phds).

You ask for what goes behind - anything actually, the role is very free, which is what some love and what others hate. If YOU get a trade idea, pitch it, and if others get convinced, it's on! I think that the optimal job is a quantitative structuring job as you here 1) gets to work on a project base unlike traders 2) get to do quantitative modelling unlike salespeople 3) don't have to do small useless programming assignments as quants are very often spending most of their time doing 4) have client contact without having to speak to the "stupid" clients - you only speak to the smart guys 5) most important: get to be creative, unlike most traders and some quants (some quants get to be more creative though)


Did that help??

 

[manik]

Yes, thankyou cstassen.
This role seems to have the fragrance of creative freedom, from a distance.
I however also find myself thinking that this might be the job for an MBA with an economics/Finance bent with good understanding of how to make the most of what the market wants currently.

That is why I want to know more about what program offers more to a person aspiring for such a position.

Also I dont think this might always be a FO position.Please correct me if I am wrong on this.

 

[cstassen]

what does FO mean?

Regarding MBA, that's more for the sales-like structurer, not the quantitative one, they do almost the same as quants

 

[manik]

FO = Front office

 

[cstassen]

I ahve never heard of a middle/back office structurer. Might exist, i dont knoow, but never heard of it

 

[Andy Nguyen]

You may want to read this article that John posted a while ago
Structured Finance Analyst: Day in the Life - QuantNetwork - Financial Engineering Forum

 

[Uncle Max]

And by the way, Baruch's MFE is the only program I know which puts emphasis on the Structured Finance. It's not the best time now to be a structurer, you know why. But it will get better sooner or later. Investors with multi-billion dollars pockets need to invest somewhere and equities usually not the best choice.

 

[manik]

Structured Finance Analyst: Day in the Life - QuantNetwork - Financial Engineering Forum

Thanks for this. I am sure one of the guys I am working with right now has done exactly this kind of work in the currency markets, except he was not into ratings.

 

[manik]

And by the way, Baruch's MFE is the only program I know which puts emphasis on the Structured Finance. It's not the best time now to be a structurer, you know why. But it will get better sooner or later. Investors with multi-billion dollars pockets need to invest somewhere and equities usually not the best choice.

Then again we are looking at another year (MSF/MFE). To be as honest as I can be I would love to get into Baruch, but I think I am targetting 2010 rather than 2009.
Also, I think in europe the markets for structured notes arent that bad (going by some stuff I read in "Structured Products" magazine). Whether this translates into more openings for structurers might be another thought altogether.