Hi, can more knowledgeable people on the forum talk about the benefit or peril of working in Asset Backed Finance / Securitization as a Quant Structurer vs Front office Derivtives Quant Structuring. I don't really understand the Asset Backed Finance area. Do they get paid like Derivative structurers/traders? And are the prospect good in this area of banking. I have to admit I would like to be closer to the business than what most front office quant experience. In other words, I'd like to gradually move into the business whilst still leveraging my quant skills. Many thanks to all replies

Asset Backed Structures would be more tricky to price.

Thanks for the reply, but what is the job prospect in this area/ compensation. Thanks again

hard to tell ABS spreads are way to low at the mom. do not think we will see too many deals coming to the market in the next six month... Could you clarify what do you mean by Quant Structurer?

Hi Gill,Thanks for your reply. By Quant Structurer I mean the person pricing the hedges for any deal done by the team. For example, suggesting to the team that just sold a SPV paying Libor plus spread to buy a swaption as a hedge. This example is very silly but you get what I mean

QuoteOriginally posted by: AliciaHi Gill,Thanks for your reply. By Quant Structurer I mean the person pricing the hedges for any deal done by the team. For example, suggesting to the team that just sold a SPV paying Libor plus spread to buy a swaption as a hedge. This example is very silly but you get what I meanwhat do you mean "sold a SPV paying Libor plus spread"? I am not sure your argrument. What do they want to do that?

Ok, I knew I'd written something not quite sensible! suppose they sold a structure that pays a coupon and want to hedge themselves, then the quant structurer suggests the best possible product to use and also pricing such instrument. I hope that's a little better example. Thanks