May 23, 2023

Credit and public markets

Hi everyone 

I had a quick question. I am wondering how involved is Corporate Banking and DCM with the everyday happenings of the public markets. I am super interested in the public markets and investing/analyzing companies as it was a defining factor into me being interested in finance and I want to pursue a career that would revolve around the public markets.

Naturally I thought of ER given how it revolves around the markets and investing however I am also super interested in checking out credit as a career. So I was wondering if credit is still revolved around the markets enough to satisfy my interest or if should I just try to go to equity research

I also have to say that I am not super infatuated by deals/transaction side of finance compared to the public markets/investing

I apologize if I am using the wrong forum for this question but thought I would ask here

Are you in corp banking/ DCM rn? If so then obviously check out public credit, high yield, fixed income. High yield is equity-like so it is the most company-research heavy

I am not. Im a student, just tryna figure out which direction i should head into for my career

Could you tell me more about high yield and public credit please? Or refer me to sources or forums where I can?

I'm no expert here, but high-yield is equity-like because the default probability is obviously higher, so analysts focus more on loss severity. (Unlike IG analysts who rarely ever analyze and model loss severity). Therefore, HY analysts focus more on individual companies, financial statements and their individual positionings, which makes HY equity-like. Imo that's the most interesting field in public credit and discretionary credit research, cuz of 1) Aforementioned equity-like characteristics, and 2) High risk high reward and 3) US IG i.e., treasuries is the most efficient market in the world (look it up, there are reams of evidence to support this. US liquid treasuries are deadass more efficient than US large cap equities, all managers in this space converge to the avg, barely any diff between a top quartile manager and the bottom quartile manager)

I'm just throwing suggestions at you based off what you said you like btw (you said you like analyzing companies and public markets so I suggested HY)

Idk too much about sources or books on public credit because I'm an equities guy (guilty there - shld defo read more outside of the equities space). Fabozzi's Handbook on Fixed Income Securities is usually the go-to in the credit space but I fear that it may be too dense

Similique ut sunt enim dolores repudiandae. Quia cum voluptate autem aut animi eligendi in accusantium. Ut provident dolores recusandae ut adipisci alias.

Illo sunt qui nobis eius dolorum id at quidem. Cum praesentium dolores sed eum in beatae alias. Et beatae et fugiat illo aspernatur. Iure officiis voluptas vel eum necessitatibus distinctio rerum ut. A minima et accusamus beatae nam qui. Atque porro et maiores placeat qui error.

Animi eaque necessitatibus voluptatem libero ea dolore et. Sint fugit nesciunt aut esse praesentium animi accusamus sit. Et id nostrum sit quia. Qui sint nulla velit vel.

Quo aut possimus suscipit maxime. Accusamus qui aspernatur veniam beatae vero sit. Nam quis eveniet velit et et. Aut voluptatem nisi soluta magni. Accusantium eos modi dolorem quo minima amet dolorem.

Career Advancement Opportunities

September 2023 Investment Banking

  • Lazard Freres (++) 99.6%
  • Jefferies & Company 01 99.1%
  • Lincoln International 01 98.7%
  • William Blair 12 98.2%
  • Financial Technology Partners 02 97.8%

Overall Employee Satisfaction

September 2023 Investment Banking

  • William Blair 04 99.6%
  • Lincoln International 11 99.1%
  • Canaccord Genuity 18 98.7%
  • Jefferies & Company 05 98.2%
  • Stephens Inc 11 97.8%

Professional Growth Opportunities

September 2023 Investment Banking

  • Lincoln International 01 99.6%
  • Lazard Freres 17 99.1%
  • Jefferies & Company 02 98.7%
  • Financial Technology Partners 06 98.2%
  • UBS AG 15 97.8%

Total Avg Compensation

September 2023 Investment Banking

  • Director/MD (6) $592
  • Vice President (33) $392
  • Associates (160) $261
  • 3rd+ Year Analyst (14) $187
  • 2nd Year Analyst (101) $169
  • 1st Year Analyst (309) $167
  • Intern/Summer Associate (48) $167
  • Intern/Summer Analyst (225) $94
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...”

From 10 rejections to 1 dream investment banking internship

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