Credit Analyst to Commodity Trading
I currently work as a credit analyst in a large European bank for a year now. However, I would like to steer my career towards commodity trading or related jobs, such as commodity research at a bank.
As a short introduction I am 28 years old, speaking 3 European languages, and have a MSc degree from one of the best German universities in applied economics. Basically, I wrote my thesis about wheat futures markets.
So, my question is if there is anyone here with a similar path. If not, I would like to hear from you guys what you think I should do in order to get a job in the commodity trading sector.
BTW, it's not essential to become a trader one day. I would be satisfied with other positions too.
Based on the most helpful WSO content, transitioning from a credit analyst role to commodity trading or related fields like commodity research is definitely possible, especially with your strong background in applied economics and your thesis on wheat futures markets. Here are some steps you could consider to make the shift:
Leverage Your Current Role: Use your position as a credit analyst to gain as much exposure as possible to the commodities sector. This could involve working on projects or with clients related to commodity trading.
Network: Connect with professionals in the commodity trading sector. Attend industry conferences, join relevant forums on platforms like Wall Street Oasis, and reach out to people for informational interviews.
Language Skills: Your multilingual abilities are a strong asset. Make sure to highlight this in your applications and networking efforts, as commodity trading is a global business and language skills are highly valued.
Education: Your MSc degree is a solid foundation. Consider additional certifications or courses that focus on commodity markets or trading to enhance your knowledge and show your commitment to the field.
Research Roles: Look for roles in commodity research within banks or trading firms. Your analytical skills as a credit analyst and your academic background could be very attractive to employers in these areas.
Internships or Junior Positions: Be open to internships or entry-level roles in commodity trading firms. These can provide you with the specific industry experience you need to progress.
Stay Informed: Keep up to date with the commodity markets, trends, and news. Being knowledgeable about the sector will benefit you in interviews and networking conversations.
Remember, the commodity trading sector values diverse experiences, and your background in credit analysis and applied economics can be a unique strength. It's all about positioning your skills and experience in a way that aligns with the needs of the commodity trading industry.
Sources: Q&A: I'm an Agricultural Commodities Trader, Physical Commodity Trading career: If you started over again., Q&A: I'm an Agricultural Commodities Trader, Career in Trading, A few questions on getting started in physical trading
Firstly well done for all the progress you’ve made so far. I’ve come across a lot of people like yourself in the 14 years I’ve been in the industry. There’s one thing missing: real market facing experience. There will be loads of different opinions on how to achieve this but feel free to Dm me if you would like to explore more
At the bank I used to be at, a few credit people became originator. They understood how to manage risk and the financial profile and needs of the companies - which makes good salespeople, as well as decent people skills of course. So brush up your networking boots.
hello, a bit late to the party but I actually have a pretty similar path. Just completed one year in credit risk for natural resources at a BB in London. I also wanted a shift towards a market/research oriented job. I applied to the trading grad scheme at an O&G company, eventually got the offer and will start in a couple of months. Looking back on this, I was pretty lucky that this single application work, and my advice would be look for graduate scheme in the commodity trading space for O&G companies and prop trading firms. Also, some commdods firm will look for people with some previous work experience and train them inhouse (think shell/BP etc) Happy to chat if you have some questions :)
Graduate schemes still take people with one year experience?
Yes just depends on your graduation date ! For me I graduated 2023 and they took 23/24 grads. Actually most candidate have some experience in my case
Great advice has already been given so I won't beat a dead horse. That being said, the commodity space (especially physical) is highly relationship driven. For that reason, I would recommend getting on the phone with people and building out a network to look around for spots. Additionally, try to attend conferences if you can swing them and get to know more about the industry. My personal take, as well as the take of many of my friends/mentors/colleagues/etc. is that at age 28 you are still highly moldable and you can still make a career pivot like this one. DM if you want to chat.
A closer position to your background would be trying a position as credit risk analyst, since most contracts in commodity trading area bilareal, this means there is a lot of counterparty risk analysis, credit limits, internal ratings to do. When you get in, make sure to invest in networking within the company and clients/suppliers.
My guess is that in 1-2 years you would be able to learn the commodity specifics (wheat for instance) and shift for a market risk/research position.
You didnt mentioned how is your knowledge/experience with derivatives, maybe trying a position in Paper/Hedge Desk could be an option too.
You could try applying to credit roles at trading houses. Depending on the product, if the traders see you as an asset rather than a nuisance you may have a shot making the switch.
Non dolores sed natus voluptatem numquam reprehenderit unde. Fuga fuga rerum omnis iure nobis. Dolor cumque eligendi sed non aut provident provident. Tempora iure perspiciatis voluptatem dolorum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...