Research in CB

Based on previous WSO threads, here's what you need to know:

1. Research in Corporate Banking (CB):

   • Focus: In CB, the research is primarily focused on understanding the financial health and creditworthiness of corporate clients. This involves analyzing financial statements, assessing credit risk, and understanding the client's business model and industry.
   • Depth: While you may cover around 5 companies during your internship, the depth of research might not be as extensive as in Equity Research (ER). The goal is to ensure that the bank can safely extend credit and manage risk.

2. Comparison to Equity Research (ER):

   • Scope: ER involves a more detailed and continuous analysis of companies, often including financial modeling, valuation, and providing investment recommendations. Analysts in ER typically cover a broader range of companies within a specific sector.
   • Output: ER produces detailed reports and investment theses that are used by investors to make buy, sell, or hold decisions. In contrast, CB research is more focused on internal decision-making regarding lending and credit exposure.

3. Skills and Experience:

   • Transferable Skills: Both roles require strong analytical skills, financial acumen, and the ability to interpret financial data. Experience in CB can be valuable if you decide to transition to ER later, as it provides a solid foundation in financial analysis and understanding corporate financial health.

4. Career Path:

   • Exit Opportunities: While ER offers exit opportunities into hedge funds, asset management, and other investment roles, CB can lead to roles in credit risk management, relationship management, and other areas within corporate finance.

If you enjoy deep dives into companies and financial analysis, both CB and ER can be rewarding paths, each with its unique focus and career trajectories.

Sources: Why corporate banking instead of investment banking?, Security or Dream Job?, Equity Research: Wall Street's Best Kept Secret, Work/Life Balance: Equity Research vs. Investment Banking - (A Definitive Guide, Part 1), ER after MBA