I did an Asset-Backed Securities (ABC) analyst internship in Credit Spectrum Crop which is a financial engineering firm whose flag product is dynamic credit ratings in New York. It is a one-month practicum in all aspects of credit structuring, enabling me to develop hands-on skills and gain insights into my classroom knowledge.
Asset-backed securities, called ABS, are bonds or notes backed by financial assets. Typically, these assets consist of receivables other than mortgage loans, such as credit card receivables, auto loans, manufactured-housing contracts, and home-equity loans. (Investing in bonds) By doing such securitization, the originator can reduce their risk and the investors can own future cash flows and earn interest profits for a comparatively lower price.
As an ABS analyst, I handled a lot of data from customers and do research on those numbers. I established a model to help costumers on their financial decisions. I built cash flow models in Excel and calculated yields based on different payment types under various default rates; analyzed the impact of default rates on yields to evaluate risk; researched the credit ratings of ABS bonds and developed an evaluation template to streamline the ratings process under a variety of scenarios to project ABS bonds’ performance. I generated the expected loss and the credit enhancement of each tranche of ABS by using Back of the Envelop methodology and Monte Carlo simulation in VBA. I performed research on the rental lease securitization market in China including its current market size, growth outlook, the relevant legislation for such products, comparison with traditional loan securitization products, and the challenges the market faces; produced an in-depth market research report and presented the findings to senior management.
I find that doing data science is not only required the technical knowledge, but also many other skills. I need to do group work with coworkers. So I practiced my ability to group work. There was another thing I learned from my co-workers that the networking is one of the most important things for the job seeking. Therefore, I realized that I need to expand my social network, especially in the financial field. Due to the frequent group meeting, I also practiced my leadership. The leadership is not my strength, but it is necessary for every college student because it is a key element in the future career development. Therefore, I will make every effort to grab every chance to build my leadership.
After the internship, I found that I changed a lot. I know more interesting guys who have great education back grand and are passionate about what they are doing. Doing work with them, I feel that it is easier for me to concentrate on the important things. I also learned the method to establish an efficient time schedule and how to follow it effectively.
My co-working is really serious about what they are doing. Every day, they make every effort to solve the problems and finish their plan. However, they are not boring people. They have many incredible ideas when doing work or having fun. I think that is what a well-educated person should be. Do things efficiently and being interesting.