JP Morgan Special Credits Group

Based on the most helpful WSO content, the JP Morgan Special Credits Group is essentially an internal workouts group within the Credit Risk Management division. These groups, often referred to by different names across banks (e.g., CS Recovery Management International, Barclays Special Asset Management, Citi Distressed Credit & Restructuring), focus on managing stressed or distressed lending situations. Here's what you need to know:

1. Function and Role:

   • The group steps in when loans or credit facilities become stressed or distressed. They handle debt restructuring processes and work to recover value from troubled assets.
   • They may also make plays by selling debt to private equity or distressed debt buyers, leveraging the value of collateral (if any exists).

2. Positioning:

   • This group typically sits within the Credit Risk Management division, not directly in Corporate Banking (CB), Global Corporate Banking (GCB), or Investment Banking (IB). However, there may be some overlap or collaboration with these divisions depending on the situation.

3. Career Insights:

   • These groups are considered countercyclical, meaning they tend to thrive during economic downturns when distressed situations are more prevalent.
   • They are thinly staffed and require specialized knowledge, making lateral hires challenging. Many senior professionals in these groups are long-term "lifers" with 15+ years of experience.
   • The role is relatively stress-free at senior levels since the group has no origination or P&L responsibility.

4. Junior Opportunities:

   • While the group may not actively recruit juniors in large numbers, it’s worth exploring opportunities through internal mobility within JP Morgan or networking with professionals in the Credit Risk Management division.

5. How to Learn More:

   • Networking is key. Reach out to current or former members of the group on LinkedIn or through alumni networks.
   • Research similar groups at other banks to understand the broader scope of workouts and distressed credit management.

This group is an excellent option for those interested in distressed debt, restructuring, or credit risk management, offering a unique and specialized career path.

Sources: BB Workouts / Special Credits Groups Pay & Hours?, CIB Credit Risk J.P. Morgan