CorpBanking Coverage vs Underwriting?
Starting a corporate banking internship this summer at a large bank and may have the option to focus more on either credit underwriting or coverage.
My understanding:
Credit underwriting is more technical (financial analysis/credit memos) while Coverage is more client interaction and involvement in structuring deals.
I’m still figuring out what I want to do long term and mainly want to maximize learning and optionality, not to concerned about compensation right now.
Which path tends to provide better skill development and exit opportunities early in a career?
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U/W is assessing risk (business/financial/credit/reputational/etc.), Origination/Coverage is assessing how profitable the deal is going to be for the bank (i.e. how much IB business will this client bring) and evaluating if it's worth pursuing at the requested hold level or not. It's better if you've done both, some banks make you do both in the same role, american BBs usually tend to push U/W to a middle office group. If you're in origination/coverage, you're expected to already know how to do all the U/W stuff, so you can just focus on structuring deals/making capital allocation decisions (well, more like supporting whatever your MD says).
Thank you for the respone, so you suggest coverage?
yeah coverage to go IB, then you can go wherever you want.
Thank you TLBandChill.
Would caveat this advice with U/W side gives direct path to PC if that is an end goal
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