Does CR Have More LO Funds than ER?

Based on the most helpful WSO content, it appears that there are indeed more types of LO (Long Only) funds available for those with a background in credit research compared to equity research. Here are some key points:

• Diversity of Funds: Credit research professionals have access to a wider variety of funds, including those managed by large insurance companies, which predominantly focus on credit.
• Work-Life Balance (WLB): Credit roles often offer a better work-life balance. For instance, in liquid credit, leveraged loans, and high yield groups, you can expect significantly fewer hours (around 60 per week for analysts) and predictable schedules.
• Compensation: While compensation in credit roles may cap out lower at the senior end compared to equity roles, it is generally competitive through the middle ranks. Senior analysts in credit can clear into the high six figures, similar to direct lending roles.
• Predictability: Credit roles often involve investing in coupon-clipping assets, leading to predictable compensation and fewer performance-based variations.

For those who enjoy the compensation and work-life balance of LO and are interested in the work, credit could indeed be a favorable path.

Sources: LO Credit (HY/LL) Sr Analyst Comp Packages, https://www.wallstreetoasis.com/forum/private-equity/liquid-credit-leveraged-loans-high-yield-groups?customgpt=1, Work/Life Balance: Equity Research vs. Investment Banking - (A Definitive Guide, Part 1), Credit funds, 2019/2020 Investment Banking Bonus Discussion