Ratings Advisory DCM - what prospects?

Based on the most helpful WSO content, here's what you need to know about exits from Ratings Advisory into the traditional finance (TradFi) and credit space:

1. Strength of Exit Opportunities:

   • Ratings Advisory can provide a solid foundation in credit analysis, which is valuable for roles in Corporate Banking, Leveraged Finance (LevFin), Private Credit (PC), and Restructuring (Rx).
   • The experience with Investment Grade credits and exposure to various deal types can be leveraged when transitioning to these areas.
   • Individuals from Ratings Advisory have been known to exit to LevFin at Bulge Bracket banks, Direct Lending shops, and credit hedge funds, among others.

2. Coverage vs. Ratings Advisory:

   • Coverage desks may offer broader experience in client interaction and deal-making, which can be beneficial for a career in Corporate Banking or LevFin.
   • Moving from coverage to TradFi/Credit roles can be feasible without starting over as an analyst, especially if you've built a strong foundation in financial analysis and have a good understanding of capital structures.
   • The transition might be smoother if you have a network in the TradFi/Credit space and can demonstrate your interest and knowledge in credit.

In conclusion, Ratings Advisory can be a strong starting point for a career in credit and TradFi, but coverage might offer a broader base and potentially safer choice depending on your long-term goals. Networking, continuous learning, and strategic career moves will be key to transitioning successfully without stepping back in terms of position.

Sources: Q&A: Big 3 Ratings Agency, LevFin WLB-focused Exits and Other Questions, An Overview of Corporate Banking, BB Corporate Banking Exit Opps?, Investment banks BB/EB London ranking 2020