Apr 10, 2025

CFA/advanced degree for credit buyside roles?

Hi all, I was wondering if the CFA is a strong credential/necessary for credit buy side roles? If you have experience as a sell side credit research analyst, do you particularly need a CFA or some kind of advanced degree? Would it make a difference depending on which shop/role (i.e., liquid, distressed, LO or L/S)? Thanks!

2 Comments
 

Based on the most helpful WSO content, the necessity and value of a CFA or advanced degree for credit buy-side roles depend on several factors:

  1. CFA for Credit Buy-Side Roles:

    • The CFA is not strictly required for buy-side credit roles, but it can be a strong signaling tool. It demonstrates commitment, endurance, and a baseline understanding of financial analysis and portfolio management.
    • While the CFA curriculum is often criticized for being "a mile wide but an inch deep," it is still respected in the industry, particularly for roles in asset management, equity research, and credit funds.
    • For liquid or long-only (LO) roles, the CFA might hold more weight as these positions often value the broad financial knowledge it provides. However, for distressed or long/short (L/S) strategies, practical experience and specialized skills (e.g., deep credit analysis, restructuring expertise) may be more critical.
  2. Advanced Degrees:

    • An advanced degree, such as an MBA, can open doors to networking opportunities and recruiting pipelines, especially for top-tier shops. However, it is not always necessary if you already have relevant experience, such as sell-side credit research.
    • For highly specialized roles (e.g., distressed credit), advanced degrees may be less relevant compared to hands-on experience and a strong track record.
  3. Shop/Role-Specific Considerations:

    • The importance of a CFA or advanced degree can vary depending on the firm and the specific role. Some firms may prioritize candidates with a CFA for marketing purposes or as a baseline credential, while others may focus more on your practical experience and ability to generate alpha.
    • For example, in structured products or distressed credit, technical expertise and sector knowledge might outweigh the value of a CFA.

In summary, while the CFA or an advanced degree can enhance your profile, they are not always mandatory. Your sell-side credit research experience is already a strong foundation, and the decision to pursue additional credentials should align with your career goals and the specific requirements of the roles or firms you're targeting.

Sources: What Distinction is Better - CFA®, MBA, or CAIA?, What roles can I get with a CFA, Breaking into buy-side equity research - my experience, Breaking into buy-side equity research - my experience, Buy-side vs sell-side path to credit funds

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

Atque quam sit ex natus saepe non fugit. Placeat fuga quia maiores. Officia voluptatem doloremque labore vel commodi. Labore saepe expedita laborum et soluta ipsam officia repellat.

Earum fugiat molestiae commodi qui dolor. Ipsum vel autem ipsa natus ipsam. Officia repellendus provident nemo.

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 01 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 (67) $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
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Linda Abraham's picture
Linda Abraham
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...”