LO Fixed Income Comp
Can anyone point me to a source or provide me with some general stats on compensation?
Looking to get insight into comp for a LO fixed income analyst seat (IG/HY), post-MBA. I've seen comp discussions on here but they seem to be mostly for LO equity analysts.
I'm interested in firms outside your typical tops shops mentoned on this forum (T. Rowe/PIMCO/Wellington, etc..), such as American Century/Artisian or a similiar place that actively hires from MBA programs.However, any info would be greatly appreciated.
Outside of the large shops, my sense is that comp is not great. I don't have a sense for American Century / Artisan, but IG / HY credit research at a smaller LO platform will most likely play ~150 base + less than 100% bonus your first full year out of MBA. This may or may not ramp up over time, but it's not a great signal on comp. In many cases, random CLO / private credit chop shop will pay better than the LO seat (although the benefit is that your WLB is probably better in the LO seat). There's a lot of baseline comp dispersion even amongst the larger LO platforms.
Got it. Thank you for that info. Let's say its 10-15 investment professionals with >$10bn AUM. Solid fund performance. That change the calculus at all?
It seems post-MBA comp for fixed income is somewhat similiar to equity.
I'd say that on average, post-MBA comp for fixed income is still lower than it is for equity. But there is some variance around that, as in all things.
10-15 investment professions with >$10bn AUM does sound like decent scale, but you also have to factor in fee rate, overhead from non-investment professionals, and comp philosophy. Assuming fee rate is not super low, a shop like you've described could probably afford to pay in-line with the big platforms but actual comp can differ significantly depending on comp philosophy.
The good news is, you can have these conversations with people who actually work at the specific shop you're looking at if and when you get an offer (I'm assuming internship, but certainly if it's a full-time offer). That period where folks are trying to get their offered candidates to sign tends to be when they are more transparent about comp (certainly if you use the opportunity to talk to a few folks to "learn more").
how is it for sovereign rates compared to credit?
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