Specializing within credit sub-asset classes

I work for a boutique LO discretionary asset manager as a junior fixed income PM. Given recent turnover and a new strategic outlook, I have the opportunity of choosing which sub-asset class within credit to dive deeper into. While I'm currently a generalist, doing work for funds with IG Credit, HY Credit and financial bonds, I'm expected to choose one of the above as we reorganize our team.

Although I'm most interested in either financial & insurance company bonds as well as HY credit, I feel like both of these asset classes are at the mercy of investor sentiment. You could have decent performance, but so long as your not at a top tier AM and there are outflows from either one of these "nichier" asset classes for a protracted time period, you'll be screwed in terms of AUM and comp.

I dont see this as much being the case for IG credit, although IG credit portfolio management will likely be the first to see a significant headcount reduction as portfolio construction will be more and more quantitatively driven. On the other hand, pressure on fee compression will be stronger for IG products as they become more and more liquid, which could also be a headwind to comp down the line.

I'd be happy to hear your guys' thoughts on which of these asset classes would be most advantageous for a career in discretionary PM.

1 Comments
 

Praesentium excepturi temporibus et voluptatem vel voluptatum labore. Excepturi at officia et. Sit voluptas blanditiis aspernatur voluptas perferendis aliquid quis incidunt.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (75) $151
  • Intern/Summer Analyst (68) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
DrApeman's picture
DrApeman
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”