Back office to Credit Analyst
Monkeys,
I'm currently working in the back office operations division of commercial loans in a fairly large international bank and want to move on to the FO.
I've been working here for about 6 months and just noticed on the job board there is a Credit Analyst position in the corporate banking division of the same bank and want to apply. I didn't go to a "target" school (Large state school that is top ~25 public) and got my degree in Personal Wealth Management with a less than spectacular GPA, so not the greatest background.
I was just wondering what I needed to know or do to have a chance to get the new position. I'm taking modeling classes online and reading up about the industry and about corporate banking products and responsibilities, to make up for my lack of finance and banking schooling. If it helps the MD of my group who has been with the bank for 30+ years and a family friend is willing to vouch for me and has told me to look for other opportunities inside the bank.
Thanks in advance.
I would say your chances are thin but not zero. Many many reasons why: 1. Your academics dont sound front office to me - front office people like smart people. 2. Taking classes and reading up is just about what every other front office candidate does - no big deal. 3. How strong is your MD's relationship with the FO hiring manager? Will he jeopardize his rep for you (in the event you flop on the interview/job?) my read is no. 4. You only worked 6 months and already looking to jump - basically what every hiring manager (especially FO) hates - a quitter. 5. I dont see how doing ops for commercial loans having a strong transferable experience to credit-credit. Credit fyi is Fixed Income. We (meaning credit people (not me)) are helping buyers and seller broker million-billion dollar notes and valuating them. Not offering some corporation a credit line in case they "fall on hard times". 6. Test your knowledge: "What is a Z-spread?" "What trade would you recommend on a flattening yield curve?" These are all basic questions that they ask at the internship interviews. If you have to google them, you are not prepared.
I can go on all day. But don't let me discourage you. Just putting reality out there. Sure you might feel hurt and throw me a monkey shit. But I'll give advice to you next:
Good luck!
^Threw you a SB for the awesome, honest advice. I'm in a similar position, but earlier in my career. I'm a junior from a #1 or #2 business school in my state (east coast) but still non-target. Despite a fair amount of networking and cold e-mailing, the best internship I was able to score was a BB operations role at an investment bank. I am an Economics major with a 3.8, 3 years of insurance sales experience (1 year of it in management). I have solid extracurriculars in modeling/valuation. I'm interested in a FO credit analyst position after my internship. Do you have any advice on how I may leverage my experience and what I can do to improve my odds of attaining a FT job as a CA next year? Thanks.
You are in a slightly better position that OP (sorry OP just keeping it real). 1. You still have a year to go. Network, network network. Apply apply apply. If yours odds are 0.1% If you apply to 100 shops you have 10% chance of landing 1. 2. I would focus on your mathematical skills. Previously when I interviewed for credit roles in the likes of BlackRock, GS etc. The interviewers were almost all fluent in math. If you did projects in your past jobs that had risk analytics - show it. 3. Imagine you were the interviewer at BlackRock - "Why should I hire this dude from XXX when I am spoilt for choice with the other 3 MIT kids who want this job too?" - Figure that answer out yourself. You work hard? Prove it. You know your technicals? Prove it. 4. Make sure you are likeable. Although I sound like a douche on this forum, I am actually very likeable in RL, something I had learnt the hard way. 5. Open up your options. Being a credit analyst isn't the end all. It might not even be as fun as you think. Or pay as much as you think. 6. Like above, be patient. My friends in the Ivies are finding it hard landing roles. In all honesty (disclaimer I come from a semi-target) what makes you so special? When I was searching for my full-time, I applied in the 3-digit range and so did my Wharton friends. I interviewed for half a year before landing the one I wanted and mind you (not trying to brag but) I was a pretty sick candidate.
Thanks again for the response. I have just a few follow up questions. 1. I am constantly grinding, networking, reaching out. I spend about 3 hours everyday). Thank you for the reassurance. 2. I have a B+ in Calc 1, A in Stats, A in Eco-Stat (pre-req for econometrics), and will be taking econometrics in the fall. Math is such a wide topic. What kind of math in specific should I be good at and prepare for in specific? 3. I usually cite my achievements from working, something along the lines of, "I set multiple sales records at companies with over 200 agents" this is proof that I am a high-capacity and ambitious individual" Is this good enough, or irrelevant? 4. Point taken... I like to think I'm fairly likable for an introvert, I get along with everyone and am socially aware. Networking comes fairly easy to me. 5. Everyone I say this to gets annoyed and I never mention this at interviews, but nearly every FO job interests me. I am capable and have worked long hours before and love it as long as I am intellectually challenged. I apply to every role that sounds even remotely interesting. The only 2 factors I care about is: is it intellectually challenging, will it give me a diverse/transferrable skill set. 6. Point taken.
Not sure why everyone thinks this a fixed income role, most credit analyst roles for corporate banks consist in underwriting revolvers, TL's, and bridges
^ this.
Thank you, that's why I included learning and knowing the products in my original post. If you have any advise or just general insight into what a basic days work is I would appreciate it.
Sorry its just my background. In my world, credit=fixed income. Don't mean anything.
CA in Corporate/Commercial banks generally do what is called underwriting - meaning they assess the risk of the company they are underwriting and give them a standardized grade on the level of risk associated with the company. This grade is then used to help "price" the facility the company has requested/has been recommended from the Relationship Manager. These facilities are credit products such as Term Loans (TL), Lines of Credit (LOC), Bridge Loans, and also include various operating risk products (FX hedging etc). CA are a support role to help relationship managers, portfolio managers, credit offers, etc. make decisions - basically you do all the bitch work for them. This includes researching the company, the industry, reading through analyst reports, "making" financials models (more like filing in pre-made financial models), spread financials, make projections, and most importantly - make excel sheets look pretty. I will say, while you're not actually doing accounting work, you do need to have a strong grasp of accounting concepts/GAAP.
X2- As someone who has been a CA in the past, I have to disagree. I agree with deas7. Hell- I don't even know what the answers are to the Z spread question is and I'm directly involved with hiring credit analysts.
OP- I think you have a decent chance. 6 months to move is the issue- usually it has to be a year. You've got an MD who will get you in the door and if you do a decent job where you are now and keep a good reputation- you can move into a CA role. As a matter of fact- too bad you're not close to where I live- we are looking for one now and I'd give you an interview.
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