Articles - Structuring - What it is..

Jan 06 - Si

A term bandied about often is "structuring". It makes things sound important, complicated and imposing.

The reality is that all things in market are a function of supply and demand.
The more something is wanted the higher it's relative value.

Structuring has several components:

1. Idea Generation / Dreaming / Reverse Engineering
2. Back Testing
3. Pitching Ideas
4. Negotiation of Terms
5. Closing Deal
6. Back Testing / Proving concept / Pricing
7. Finalisation of Termsheets / Legal aspects
8. Issuance
9. Price publication / ongoing maintenance management.
10. Secondary Trading

So now you know the steps, where do you fit in and what can you do. The reality is that the big bucks are paid for the people that can do steps 1, 5 but to get there means learning alot about a lot of things from people, to politics, legal to regulatory.

Structuring - How do I get into it..

Well the easiest way is to start young, prefarably on an intern program and impress. They need people who can communicate, deliver, handle pressure and do anything and everything. Ideally with a strong maths / legal or other side.

There is a growing need for people with a breadth and maturity to help shepherd deals and bridge the gap between the dreamers, the green back testers and get things actually done - call it project management, call it product development, call it essential - this is a breed which is growing in importance - they're are some exceptional people doing it - especially at ABN Amro - and something which is an opening for those from risk, product control, projects who are a cut above.

Sales - well if you've been selling and you know what clients want, the next step is to make it for them.. a natural progression.

Trading - go from flow trading into trading the more complicated products and then mastering the intricacies of creating something which really works for all sides.

In Summary...

Structuring is making something work for the client, and at its heart is people that are switched on, thinking and dynamic, but it's not a black hole, just something which is a graft until you become skilled, and then becomes an art.

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