Hi guys,
I have a year's of IBD background from BB and I am about to make a move to a sell side high yield/ DD analyst role at well respected name in the credit industry (sell side). My long term goal is to make a move to the buy side and I was wondering hoe feasible this is, since most funds prefer just bankers with a couple of years of experience. Is there anyone who knows or have heard of cases where DD analysts moved from the sell side to a fund on the buy side?
I know of numerous cases in London, at all levels of seniority. Junior analysts on distressed desks, incidentally, are always interesting for distressed funds - obviously that level is where most of the volume in hiring is full stop, but then you also have relevant experience.
I can only comment on London, where distressed funds have made a lot of hires in the last 12 months. Hiring tends to skew towards analysts from restructuring and levfin groups because their experience gives them an edge vs. for instance, M&A analysts. Likewise, a HY / DD background should give you an advantage too.
Actually plenty of M&A guys move to distressed funds as well, some funds actually prefer them to lev fin backgrounds. The argument being that whilst lev fin guys have product knowledge, people from M&A know how to value companies better. The debt-specific stuff can be taught relatively easily provided someone is motivated to learn. Restructuring is indeed a great background to come from though.
for what it's worth, dan loeb worked in hy/dd sales for several years before he started third point...so the skill set can definitely be translatable
Nice name OP.
In furtherance to the OP, sell side, as described above, to loan-to-own shops? To me seems more of a banking skill set?
It totally depends on deal or sales flow. A lot of DD firms put a large focus on their sales staff because it takes considerably more work to sell DD holdings than it does to move investment grade notes. With that being said if you know your valuation and are a personable and able to sell then you shouldn't have too much trouble finding a position granted we don't have a world recession.
So "high yield," you're going to like a lev fin desk at a top bank? When you specify "high yield" does that mean that you'll only play in bond markets or will you be exposed to bank debt as well? Bank debt/levered loans is the more valuable skill set IMHO.
After a year on a good lev fin desk, Headhunters should be contacting you, don't worry about that. Make sure your LinkedIn is up to date and shit - that market is hotter than the devil's asshole right now. Lots of CLOs getting done...
Honestly in the current interest rate environment you'll probably get a lot more exposure to high yield new issuance than distressed/restructuring stuff.
As some one who is coming on as a FT analyst with a bank debt/levered loan team in the MM, what should I be focusing on in terms of recruiting?
I clearly won't have the banking background so should I focus by long term energies on a DD/HY buy side shop vs. MM PE?
Appreciate any advice you can add.
Hi NYCbandar, this is desk HY/DD analyst on the trading floor. It will be funtamental analysis, valuations, investment recommendations etc on names that are either cross over, HY/DD etc. There will be constant interaction with sales/traders and it will cover bank loans as well. This is not a lev finance role.
Are you going to be a publishing research analyst (recommendations to clients) or a non-publishing desk analyst (recommendations to the desk)?
https://www.avenuecapital.com/Team.aspx?CategoryID=Portfolio%20Managers… http://investing.businessweek.com/research/stocks/private/person.asp?pe…
I believe these desk analysts at Lehman focused on recommending names to the traders. I'm not sure if this role still exists today across all banks, although fundamental strats at GS sounds similar.
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