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.
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
CLO research is oftentimes boring as fuck and not very deep. You just buy everything because it’s a fee machine and you have to keep AUM growing.
If you want to work in MM HF equity research is the obvious choice. 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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