Is it possible to go from ER to Fixed Income Portfolio Manager?
Title.
Sellside equity research to fixed income portfolio manager. Looking to jump from banks to mid-size asset management. Looking to fixed income for the work life balance. Spent majority of time self-study FI portfolio management. Is it rare to skip the credit analyst/ratings analyst route and go straight to PM?
My backup option is to go through the QF/MBA route which does not seem to be ideal. Can anyone point me in the right direction here? I really enjoyed credit investing for a long time but never found myself in the recruitment pipeline. Do I sit it out for a few more years in equities and keep networking OR to go for MBA and join as an intern?
Based on the most helpful WSO content, transitioning from sell-side equity research (ER) to a Fixed Income Portfolio Manager (PM) role is challenging but not impossible. Here are some key insights and actionable steps:
Skipping the Credit Analyst Route:
While it is rare to skip the credit analyst or ratings analyst route, it is not unheard of. Many PMs in fixed income have backgrounds in credit analysis because it provides a strong foundation in understanding credit risk, yield curves, and portfolio construction. However, if you have spent significant time self-studying fixed income portfolio management and can demonstrate expertise in areas like duration, convexity, and credit spreads, you might be able to bypass this step. Networking with buy-side professionals and showcasing your knowledge will be critical.
Work-Life Balance in Fixed Income:
Fixed income roles, especially at mid-sized asset managers, can offer better work-life balance compared to sell-side equity research. However, this varies by firm and role, so it's important to research specific firms and their culture.
MBA or QF Route:
Pursuing an MBA or a quantitative finance (QF) degree is a viable option if you are struggling to break into fixed income directly. These programs can help you pivot into internships or entry-level roles in asset management, providing a structured path to transition. However, this route is time-consuming and costly, so weigh it against your current progress in networking and self-study.
Networking and Timing:
If you enjoy credit investing and have been building expertise, staying in equities for a few more years while aggressively networking could be a better option than immediately pursuing an MBA. Attend industry events, connect with fixed income professionals, and leverage your existing network to find opportunities. Highlight your transferable skills from equity research, such as financial modeling, valuation, and market analysis, and tailor them to fixed income.
CFA Designation:
If you haven’t already, pursuing the CFA charter can significantly boost your credibility in the asset management space. Fixed income asset managers and investment consultants value the CFA designation, and it can help bridge the gap between your equity research background and fixed income aspirations.
Demonstrating Expertise:
To stand out, focus on showcasing your understanding of fixed income concepts like asset-liability management, tail risk hedging, and yield curve dynamics. Highlight any relevant projects or self-study efforts during interviews or networking conversations.
In summary, while skipping the credit analyst route is rare, it is possible with the right combination of networking, self-study, and demonstrating expertise. If progress stalls, pursuing an MBA or QF degree could be a solid backup plan. Keep networking and positioning yourself as a strong candidate for fixed income roles.
Sources: Buyside Viewpoint from a Fixed Income PM, https://www.wallstreetoasis.com/forum/job-search/buyside-viewpoint-from-a-fixed-income-pm?customgpt=1, Q&A: Managing Director at Large Global Asset Manager
If I were in your shoes - I'd target jumping from sell side to an AM firm first. Take your experience, coverage area, and pitch yourself to be an LO equity analyst at an LO AM of really any size. That's a hard enough seat to get, much less jump from ER into a PM role for FI.
The best option would be a midsized manager, with a host of cross asset class strategies, that once you get in - you could get experience or exposure across the board. Those can, in the right setting, be a bit more fluid in your coverage or exposure. Get your CFA, and then see if you can jump over into FI coverage, and then from there move toward a PM role. That's probably pie in the sky - but a more realistic route than jumping to a FI PM.
I gotta add that's both more realistic and very pie in the sky. I'd say just recruit for FI analyst roles directly if you're interested. And consider more "niche" areas like munis, securitized, CLOs, if you're Ok with the possibility of getting pigeonholed
Good point - I may be over indexing on the 'optimism' scale this week!
Yeah I mean just from recent experience of the last 2-3 months of the job search, I found it much easier than I expected to recruit for FI Analyst roles at a wide variety of shops, large and small alike, with smaller funds and "niche" security types being more favorable. I found it meaningfully less difficult to get to the interview for those roles vs. equity roles at the same shop as well
Not that any of that is "easy" tho...all still quite challenging across the board
Why would marketing be relevant to FI PM?
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