Infra banking -> fixed income analyst. The wrong moves?
Hi there,
A bit of background on me: I graduated from a top-10 undergraduate feeder program and spent the past year in infrastructure syndication financing at a top European bank in NYC. While the experience was valuable, I found the culture wasn’t the right fit for me, and the infrastructure focus felt somewhat narrow in terms of long-term exit opportunities.
I recently accepted an offer in fixed-income research (ABS) at a major rating agency (e.g., Fitch/Moody’s), with the intention of building deeper securitization and structured-finance expertise and potentially lateraling into a BB securitization or DCM banking role after about a year. I want to see the capital markets. At the same time, I also received an associate-level infrastructure banking offer at a smaller bank.
I’m reflecting : Did I make a mistake not staying in a bank?
I’d really appreciate any perspectives or advice. Thank you in advance.
Based on the most helpful WSO content, your move from infrastructure banking to fixed-income research at a major rating agency isn't necessarily a mistake, but it does depend on your long-term goals and how you leverage this transition.
Key Considerations:
Broader Skillset in Structured Finance:
Moving into fixed-income research, especially in ABS at a top rating agency, can provide you with a strong foundation in securitization and structured finance. This expertise is highly transferable and valued in capital markets roles, such as DCM or securitization banking at a BB. If your goal is to deepen your understanding of capital markets, this move aligns well with that objective.
Exit Opportunities:
While infrastructure banking offers a more niche focus, it can lead to roles in infrastructure-focused private equity or funds. On the other hand, fixed-income research opens doors to broader capital markets roles, including DCM, structured credit, or even portfolio management. Your ability to lateral into a BB securitization or DCM role will depend on how well you network and position your experience.
Banking vs. Rating Agency:
Staying in banking, even at a smaller firm, might have provided a more direct path to traditional banking exits like private equity or infrastructure funds. However, rating agencies are respected for their analytical rigor, and the structured finance expertise you gain there can be a strong differentiator when transitioning back to banking or other capital markets roles.
Cultural Fit and Long-Term Goals:
You mentioned that the culture in infrastructure banking wasn’t the right fit for you. This is an important factor to consider. If the rating agency role offers a better work-life balance or aligns more closely with your interests, it could be a better fit for your long-term career satisfaction.
Advice:
Ultimately, careers are not linear, and as highlighted in WSO threads, many professionals deviate from the "traditional path" only to find success in unexpected ways. If you remain proactive and strategic, this move can serve as a stepping stone to your desired role.
Sources: IB midlife crisis at 23… please help, Career Mistake - Left IB too Soon, Interviewing For Infrastructure Investment Roles, S&T Summer Analyst Lateral to IB FT?, Questioning my decision to go into finance. Why did you pursue banking? Legitimate answers please.
Banking to rating agency is a step back imo. Would have been easier to just go to a DCM / securitization group directly. You can still do it now it is just going to be lower pay / less interesting work/ slower career progression in the meantime.
yep, I found it less engaging but more exposure on modeling and credit underwriting tho. Should I ask my banking offer back?
bump
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