Oct 15, 2023

Credit Research at AM vs. Corporate Banking

I had 2 offers; one as a credit research intern under an asset management arm of a large insurance firm. The other as a corporate banking intern under an industry group on the credit side (underwriting loans and monitoring a portfolio).  Which opportunity is better opportunities  wise? I know better is subjective but I would like a bit of insight into the future opportunities for both. Can CB lateral into an IB debt group or later go on into AM if I don't like CB (credit asset classes)? For credit research in AM are you stuck in the AM industry or can u transition? Thank yoh

 

Ah, the classic conundrum of choosing between two great opportunities! Let's break it down:

Credit Research Intern under an Asset Management arm: This role will give you a deep dive into one industry, as you'll likely spend your entire career focusing on it. You'll be part of the flagship business of the AM arm, which is a seasoned manager in bank loans. About half of the assets are in liquid credit strategies and the other half in CLOs. They've also recently launched a private credit platform. This could be a great opportunity if you're interested in a specialized career path.

Corporate Banking Intern under an Industry Group: This role is more about relationship management and credit analysis. You'll be underwriting loans and monitoring a portfolio. It's a career-type seat where you can take on more responsibility. You'll develop a solid foundation in cash flow analysis and learn about collateral. Corporate banking is very relationship-focused, and you'll have the ability to move from client management/credit/risk, so you can have a very varied career depending on how you position yourself and what your interests are.

As for future opportunities, it's not uncommon for people in corporate banking to lateral into an IB debt group or move into asset management. Similarly, while credit research in AM is specialized, it doesn't necessarily mean you're stuck in the AM industry. Transitions are always possible, especially if you're proactive and network effectively.

Remember, there's no right or wrong choice here. It's all about what aligns best with your career goals and interests. Good luck!

Sources: Why corporate banking instead of investment banking?, https://www.wallstreetoasis.com/forum/asset-management/credit-suisse-credit-investments-group-vs-blackstone-octogan-cifc-etc?customgpt=1, https://www.wallstreetoasis.com/forum/investment-banking/corporate-banking-vs-management-consulting?customgpt=1

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