Raw | Career Advice

What does MBS Stand for?

MBS can stand for various things depending on the context and situation it is used. The two most commonly used full forms are MBS- Master of Business Studies and Mortgage-Backed Security. In this blog, we shall talk about both in detail.

MBS- Master of Business Studies

 

• Master of Business Studies is a postgraduate degree that has two core majors to it- Business and Management. 
• It equips the students with advanced knowledge and understanding of finance, marketing, accounting, human resource management, law ethics, and entrepreneurship. 
• The MBS degree enriches a student with theoretical and practical knowledge of Business studies and prepares them for leadership skills and roles in different firms.
• The length of the course is similar to any master's degree and goes for two years.

MBA v/s MBS

• MBA is a Master of Business Administration and is more inclined towards managerial aspects of business. 
• MBS is a Master of Business Studies and is more inclined toward the research aspects of business.
• A table with basic differences is given below:

(Read More: What is the difference between an MBA and an executive MBA?)

What is the Eligibility Criteria for MBS?

• The criteria for eligibility can be different depending on the college you choose. The general criteria for every college is having an undergraduate degree in Business or a related field. A diploma in business or management field also works.
• There might be entrance exams for some colleges. The entrance exams are generally  CET, CAT, MHT, CMAT or GMAT.
• Some colleges may have their entrance exams and interviews for admission to MBS programs.

What are the Career prospects after MBS?

• MBS is a prestigious and recognized degree and students can pursue careers in various sectors once they complete their degree.
• The students can work in HR, Finance consultancies, business analyst roles, etc.
• The average salary package starts at around 5 lakhs per annum.
• Students can also pursue higher studies like a PhD.

MBS-Mortgage-Backed Security

• Mortgage-Backed Security Is a type of financial asset.
• It represents a claim on the cash flow from a pool of mortgage loans.
• It is a bond essentially backed by a mortgage. 
• Homeowners' Mortgage payments are used to pay interest and principal to investors who purchase these securities.
• It pays periodic interest to investors.
• It doesn't have a maturity period and ends once the mortgage is paid.

(Suggested Read: MBA vs. MSC: Which path to choose as your career?)

What are the various types of MBS?

• As discussed, MBS is a financial asset under Asset Based Security backed by other assets. 
• There are two types of MBS- pass-throughs and Collateralized mortgage obligations.
• Pass-throughs are the trusts that will give the payments of mortgage proportionally to investors. They are the simplest type of MBS.
• Collateralized mortgage obligations are multi structures that will divide the payments on a mortgage into different maturity profiles, different risk and return profiles with different classes.

Conclusion:

In conclusion, MBS plays a significant role in finance markets of the modern age and helps investors earn returns on mortgage payments. Different types of MBS provide customization to the investors catering to their needs.

FAQ’s:

1. Is MBS better than an MBA? What’s the real difference?

• Reality Check:

  • MBS (Master of Business Studies) is often more academic/theory-focused, common in Europe/Nepal.

  • MBA (Master of Business Administration) is industry-oriented, with global recognition.

  • Verbatim: "Top firms like McKinsey rarely hire MBS grads—they prefer MBAs from AACSB-accredited schools."

2. I have 50% in graduation. Can I still get into a good MBS program?

• Brutal Truth:

  • Most Tier-1 universities require 60%+ (or 6.5+ CGPA).

  • Workaround:

    1. Target private universities with lower cutoffs.

    2. Gain 2+ years of work experience to compensate.

3. What’s the average salary after MBS in 2024?

• Data-Driven Answer:

  Region	Average Starting Salary (USD)
  USA	$55,000 (non-top schools)
  Europe	€42,000
  India	₹6-8 LPA

  • Note: MBAs earn 2-3x more at top schools.

4. Can I switch from engineering to MBS? Will my tech background help?

• Strategic Advantage:

  • Yes! Specialize in Tech Management or Analytics to leverage your degree.

  • Top Recruiters: Amazon, Deloitte (for roles like Product Manager).

5. Are online MBS degrees worth it?

• Employer Perspective:

  • Accepted by: Startups, SMEs.

  • Rejected by: Investment banks, Fortune 500s.

  • Exception: Hybrid programs from ranked schools (e.g., IE Business School).

6. What entrance exams should I take for MBS abroad?

• Exam Options:

  • GMAT (Global standard, 650+ score needed for top schools).

  • GRE (Accepted by 90% of MBS programs).

  • Pro Tip: European schools often waive tests if you have 3+ years of experience.

7. Will AI replace MBS jobs?

• Future-Proofing Advice:

  • At-risk roles: Traditional marketing, ops.

  • Safe bets: Data-driven fields (Supply Chain Analytics, FinTech).

  • Upskilling: Learn Python/SQL to stay relevant.