Despite some recent positive signs for the property-backed securitised debt market, it’s wishful thinking to suggest banks are once again going to recruit for commercial mortgage backed securities (CMBS) expertise. However, some new opportunities have presented themselves recently.

1bn has been raised since July in the CMBS market, down to two issues by Tesco and one from Land Securities. Whilst this is not to be sniffed at, it’s a long way down from the pre-crisis highs of 38bn issued by mid-2007, for obvious reasons.

Still, some wily investors are looking to capitalise on the vast swathes of distressed property debt on investment banks’ balance sheets (assuming they’re willing to sell it) and this is creating job opportunities for ex-CMBS bankers.

John Lenz, a property investment-focused headhunter at Allemby Hunt, says: “There are funds or asset managers being set up to target distressed property debt, and this is likely to accelerate next year. There are also corner shop firms started by ex-senior investment bankers looking at investing in property, whether that’s bricks and mortar or securities, including CMBS debt. The biggest challenge is convincing investment banks to offload this CMBS debt.”

One such firm is Ellandi, run by former Deutsche Bank UK head of real estate Morgan Garfield, which has just bought a 10m senior loan secured on a shopping centre from property firm Stockland. Then there’s First Growth Real Estate Capital, launched in September by ex-ING Real Estate MD, Wilson Lee.

TwentyFour Asset Management and Rutley Capital Partners have also just kick-started a fund to target opportunities in the CMBS market.

“There will be some opportunities within these firms for ex-property financiers to analyse CMBS debt from a buying perspective,” adds Lenz. “However, these organisations are small, so there obviously isn’t going to be enough demand to mop up the hundreds of unemployed property bankers out there.”