2 year Credit Analyst looking to move into IBD

Hi, thank you for taking the time.

I have been working as a corporate credit analyst at one of the top rating agencies for almost 2 years now and I realized that a lot of the experienced that I have gathered are very transferable to a IBD position. I have been getting a lot of offers from recruiters to do credit risk or origination but I would rather move into IBD. Frankly because of course the compensation, but also I would like the challenge very much.

My question is: Is making the move to IBD from credit analyst doable or am I better off going into credit risk? If reasonably doable, what would be the best route to initiate the connection?

A bit of background:
- Graduated from a non-target college with a 3.7 GPA. Accounting Major
- Built financial models, 3 statements, quarterly cash flow, liquidity analysis models, recaps and M&A
- Worked in major M&A deals and regularly interact with C-suite at companies
- My responsibilities include understanding credit agreements, covenant packages, building financial models, creating issuer/investor presentations, credit monitoring, liquidity assessments

Thanks again for your time.

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Comments (34)

Dec 31, 1969 - 7:01pm

Credit Analyst to IB Analyst (Originally Posted: 04/24/2013)

Need some guidance here...

I've been working as a credit analyst in a commercial banking group for just under 1 year. The job included 4.5 months of formal credit training, which is why i originally signed on in the first place. Now that training is over, I've reached the end of the rope and I'm looking for something new. I'd like to jump into an ib analyst position by mid-fall of this year.

Does anyone have experience with the credit analyst to ib analyst transition? If so, I'd appreciate any thoughts or advice on the subject.

Dec 31, 1969 - 7:03pm

Very curious as well. Any input is greatly appreciated.

And OP...just curious. What do you mean by "end of the road"? Is there not much of a future in commercial banking? What is typical compensation look like down the road. Is IB really that much better?

Dec 31, 1969 - 7:06pm

jiggider:
Very curious as well. Any input is greatly appreciated.

And OP...just curious. What do you mean by "end of the road"? Is there not much of a future in commercial banking? What is typical compensation look like down the road. Is IB really that much better?

To answer your question breifly... Here are a few reasons why I am trying to move out...
1. Sub-par exit opps (only dcm and lev fin, maybe)
2. Slow-paced environment
3. Not a competitive atmosphere among analysts
4. Lower-tier compensation compared to other areas of finance

I wouldn't let those thoughts discourage you if it's where you want to end up. There are plenty of positives to cancel these out. PM me if you have anymore specific questions.

Best Response
Dec 31, 1969 - 7:07pm

Tweeter:
jiggider:
Very curious as well. Any input is greatly appreciated.

And OP...just curious. What do you mean by "end of the road"? Is there not much of a future in commercial banking? What is typical compensation look like down the road. Is IB really that much better?

To answer your question breifly... Here are a few reasons why I am trying to move out...
1. Sub-par exit opps (only dcm and lev fin, maybe)
2. Slow-paced environment
3. Not a competitive atmosphere among analysts
4. Lower-tier compensation compared to other areas of finance

I wouldn't let those thoughts discourage you if it's where you want to end up. There are plenty of positives to cancel these out. PM me if you have anymore specific questions.

I'm a former BB credit analyst in IBD.

Not sure how you consider LevFin subpar. Also few of my former analyst classmates were poached before even finishing the program. Two are at a credit based hedge fund. One is in credit PE. Multiple others in DCM and LevFin roles.

Slow-paced environment? Sure if you like working 80+ hours a week

Not competitive amongst analyst? You're right. Since being in IBD, alot more people are willing to throw each under the bus.

Lowered tiered compensation? You're right again. I am so glad I am making 30% more and working 40 more hours each week. I guess that's a sound logic for some.

Here is my take.

IBD is more equity oriented and credit analysts are more debt oriented. Both are good positions in their respective fields. Both have very good transformable skills. It depends on what the person wants to do. To the OP, if equity is your goal, go for it, but know the differences between a credit analyst and IBD.

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Dec 31, 1969 - 7:04pm

I know two people who have successfully made the transition from a credit analyst to IBD analyst; however, this was achieved through networking extensively. One of them was in corporate banking credit and the other was in commercial banking credit.

Dec 31, 1969 - 7:10pm

MPBYO:
If you're talking about WF Credit Management Training Program doesn't that put you at the Associate level?

Close but no cigar. Without giving away too much, this program is structured so that you're an analyst for 1.5 years, then bump up to an associate-like title.

Dec 31, 1969 - 7:09pm

maybe you'd have an advantage to a specific group in IBD? like Lev Fin? im not sure, just suggesting that maybe a targeted search would be better..

I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG
Dec 31, 1969 - 7:12pm

Credit Analyst Position as a foot in the door at an ibank???? (Originally Posted: 09/09/2006)

Help!! I am considering getting into investment banking at an entry level position, but I have no related experience. I have my MBA in Finance and my undergrad in Math and Econ. I spoke to a manager at an Ibank and he suggested that I start as a credit analyst for a couple of years to learn the business and products. Is this a good idea or a waste of my time?

Dec 31, 1969 - 7:13pm

In my opinion, waste of time. With an MBA in finance, you should be able to leverage your career center into an associate role as long as your school is excellent. If it's not excellent, your options are much narrower.

Also, be careful of pigeonholing yourself. It's hard to transition from another part of a bank into i-banking.

  • 1
Dec 31, 1969 - 7:15pm

I would suggest that given the fact that you already have your MBA, don't try to take a enroute to something.

Just go directly for it. It might be hard but not impossible.

YOu don't have much time to waste in a career thats not gonna get you anything.

Dec 31, 1969 - 7:17pm

I think he might mean a research credit analyst. He told me the position would be researching, qualitative analysis, credit proposals, and basically getting to know the industry and products. I am hoping to get an interview so I can find out more. Thanks for all your comments!

Dec 31, 1969 - 7:18pm

I don't know....I agree with Ziggy - you should be able to get straight in given your MBA. Trying to move sideways could be tough, depending on where you want to end up. I know that we would be suspect of a 'credit guy' trying to make the move over to M&A for example...personality/ approach to work etc are seen to be quite different

Dec 31, 1969 - 7:21pm

I worked at a BB in credit for my first 2 years. About 5 or so of my analyst classmates moved into ibd as 3rd years after their first two. A couple others lateralled into IBD during their 1st year. So, clearly it is possible to transition.
Depending on what kind of work you're doing, there are opportunities to work with and network with people in the ibd.
Transitioning might be tougher though since it sounds like you're in a satellite office.

Dec 31, 1969 - 7:23pm

I'd be interested to hear about any useful resources regarding corporate banking work, i.e. similar forums, career guides, websites, etc. I've been doing research and using the search function here on WSO, but info is somewhat limited so far.

Do you previous posters use anything in particular? Just WSO?

Any input is appreciated, thanks guys.

Dec 31, 1969 - 7:25pm

To make things "worse" I would analyze investment funds and not merger or LBO deals, so I guess this makes my situation even more complicated.

Then my next Q would be: what is the possibility of transferring to London and do LBO and merger credit analysis, after a year or so, if I am top performer at my location (satelite office). Does anyone have insight on this? Would be appreciated a lot!!!

Dec 31, 1969 - 7:28pm

Thank you for the comments so far!

To what extent do the following things put me in a disadvantage:
1. the work would be credit analysis of investment funds and NOT lending activity
2. the work is in satelite office and not London

How much would it be possible to work in London and doing lending related credit analysis after a year, or two in my home office?

Dec 31, 1969 - 7:29pm

Dude,

Why are you making things so complicated?

I read your posts and it becomes clear you don't want to do credit at all. Also the sector you are going to cover won't really contribute to your move. Please bear in mind credit is a support function.

MS is a great brand name and very prestigious but in the end of the day the skills you are going to gain in 3 years time in credit are not usefull for your ultimate goal.

Let me be honest with you , moving in this market to ibd from credit will be very very tough, even in normal booming markets it will be very very tough depending on politics etc.

Why would you spend 2-3 years of your life doing menial meaningless work which doesn't contribute to your goal to be in IBD?

Credit is a very very important function for a bank but it is not usefull at all if you want to be in IBD because you don't structure deal, you don't pitch, you don't build financial models etc etc Moving to IBD will be difficult.

It's a very important function for a bank and a very good stint for someone who wants to be a top AAA risk manager but clearly that's not your goal. I think credit is not for you if you don't want to be a risk manager and get pigeonholed by headhunters.

It appears to me you only takes this offer because it's MS.
Remember being able to say you work at MS doesn't make you feel happy. Your friends at local banks or DrKW, RBS, Santander, WestLB,Fortis, HSBC, Calyon, SocGen, ING etc alike may do deals, travel a lot, do lots of financial modeling and you are just doing risk mgt.

I would suggest you do the following:

  1. Join a local commercial bank or other investment bank (if possible, apparently there are satellite offices) in your home country in Europe in their IBD, having the relevant M&A/financing skills from the beginning is much more useful and move to a BB IBD in 2 years.

  2. Join a top 5 consultancy firm for 2 years , take 1 year for 1 yr MBA (e.g. INSEAD/KELLOGG/London Business School) and move to a BB as an associate 1 in IBD

Having the MS offer in your pocket, it should be easy to get offers in IBD at local commercial banks or top 5 consultancy firms.

Both options will bring you to a top tier BB IBD in 2-3yrs if that is really your goal.

Don't waste the best years of your life in a menial support function if it is not your passion, you will not have the top performance required if something is not your passion at all.

Perhaps Genghiskan can confirm this?

Dec 31, 1969 - 7:30pm

credit analyst to IB (Originally Posted: 03/10/2008)

i am a junior credit analyst at a BB alternative investment division...we manage a range of portfolios of leveraged loans/hy bonds/FRNs...everything from traditional cash flow CLOs, moderately levered funds, and some more highly levered funds...the AI business is experiencing some pains and lay offs have been coming with more anticipated...i started on the desk out of college (07) after I completed the firms IB Analyst training program...was NOT hired into IBD, but my ex-PM got me a spot in the training class after he hired me...with that background and current job mkt conditions do you think i could get hired as an off-cycle analyst at a BB or MM?

Dec 31, 1969 - 7:31pm

It's definitely possible. I worked in more of a loan products group at a BB before I transferred into IBD. The markets are a lot worse right now (I did this at the peak, back in late May of last year, so that definitely made it easier), and that might hinder you a little bit or a lot. You will definitely have a skill set that is attractive to IB programs, but they'd most likely make you a first year analyst.

My best guess is that whenever bonuses go down this year, and more people get bottom bucket (aka the indirect force out), or middle bucket becomes much less desirable, analysts at your BB will leave. They will most likely need a quick fix (at my former place of employment, they didn't post for new off cycle IBD analyst positions - they hired through headhunters and networking), and you could slot in there. In between March and July, I would think it'll be slim pickings.

And by no means is it a guarantee they will want to fill all the slots for analysts that quit, as they will have new ones coming in. Your prior IBD training though should help you though.

Funniest
Jul 23, 2018 - 4:18pm

Why are all the comments from 1969 lmao? I think you should worry more about getting drafted to Nam than moving into IB dude.

Dayman?
  • 5
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