CLO fund vs equity research

Ultimate goal is to work at a MMHF. What is better for first job out of school. Investment analyst focused on LL / HY at top tier CLO manager (think Golub, Octagon) or equity research associate at BB? Is the transition possible from CLO to L/S equity at a MM? Are there more credit focused pods that would be suitable? CLO manager seems like a more interesting role than ER but ER seems like the better path to MM. Let me know thoughts on these opportunities, advice, and any other color.

4 Comments
 

Are you dead set on equity L/S as your goal? Sounds like the leveraged loans and HY opportunity at the top CLO manager is much more interesting and you seem to agree. Could make a great career in that niche.

ER at a well known bank would be the generalist approach but a lot less unique and possibly less interesting work. Best paths to a L/S equity would be ECM or quant equity trading with ER as a lagging #3 imo

 

A credit seat at a shop like that (which likely has additional strategies beyond CLOs) is a far better seat than ER 99% of the time (many folks in the credit world would kill for a seat like that). If you are absolutely 100% certain that you want to work at a MMHF then you should take that ER role but think long and hard about the career volatility / risk. adj. return of both paths (senior analyst at the right credit shop could be close to or above seven figures with far less career vol).

 

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