As shown above! I work in corporate credit for a f100 financial arm of a manufacturing company as a credit analyst. I live in a tier 2 city (not really sure the tiers but that’s my guess) and am in my 2nd year.
Structure:
1st year credit analyst t1 pay bucket
2nd year credit analyst t2 pay bucket
3rd year credit analyst t3 pay bucket.
4th year - senior credit analyst
Pay: 3 years bonus target 9%
1st year 60,000-65,000
2nd year 65,000-75,000 (depending)
3rd year 70,000-80,000
Senior- 90,000-110,000 (bonus target 15%)
At first I went into this field because I had to turn down my ib offer due to some family stuff and had to move and find a job as fast as possible which led me to credit. After that was looking for an ib job because my first company had me working 80 hours for nothing and I’d rather make something and do it. After that and securing another interview at an ib I had to move yet again resulting in working at a credit sweat shop (offer 1 day post move) and at least making good money! Now that I moved again I couldn’t be happier, we get over 3 weeks pto great benefits very very good match for 401k and work 40 hours a week on the dot. Now I am very happy I chose the path I did, though less money I love the benefits.
What percent of your job would you say is accounting vs. risk vs. project management?
The accounting work I do is analyzing financial statements/tax returns and understanding how things flow across the financial statements. I also sometimes find myself converting tax returns from tax to gaap using the m-1 and schedule k. Since we are regularly working clients from 5m loc to 150m locs there is quite a bit of advanced financial analysis and modeling of financials with some more advanced projections since our lines often carry a 12-24 month term (13 for rlocs). This includes business analysis and global analysis for borrower/personal/corporate guarantors. The risk management aspect comes into play when we get into larger customers we work directly with risk to develop probability of defaults for the industry/like customers as well as a total portfolio risk for that specific clientele along with global collateral analysis. The larger the line the more risk specific analysis involved whereas with smaller customers we usually look at credit/pay history/LTV analysis to do the deal to save time.(much less in depth). We don’t even require financials under x dollar amount.
So I would say the accounting is more of an acquired/background knowledge as none of my job is really accounting and then risk management and financial analysis are about 95% with project management being around 5as that’s just the nature of large credit. Project management aspects include audits of customer equipment and other small Projects.
To add to this. The next step after a senior analyst would either be credit management (150k+25%) to global credit manager, or going into risk management for deals $30m+ to perform further analysis prior to sending it to the board. (150k-250k depending).
So you're pretty much a glorified accountant?
Yep, definitely glorified accountant. But in all seriousness, we do financial modeling/ analysis and risk management. Analyze the riskiness of a credit to determine if it’s investment grade or not. When you’re talking about $50mm-$150m deals organizational/portfolio risk is definitely accountancy. While we use some accounting in our day to day so does everyone in the business world accounting does play a huge part in terms of deal flow. We are holding these for 5+years and need to be sure that they will perform. But we need to know accounting and have a pretty in depth understanding to review the financial statements prior to analysis. We aren’t putting together financials but we are using them just as any other analyst would in order to make decisions.
Sounds like what I do at work minus the big client complexity. Don't you guys use audited statements for clients of that size?
To answer at reformed accountancy is an important aspect to understand what you're doing and determine where things should go in your financial model.
Thank you for that last part! We use audited financials for clients of that size definitely. When we have a client of that size we typically get audited financial statements and corporate guarantors (usually affiliates of the company) in order to capture all of their business. We only take tax returns for very small clients that are doing a sort of 1 off transaction. Though we do sometimes allow an exception if the exposure is between $500k and $3MM where we would take their tax returns, this is often if we have a personal guarantor and can capture everything within the returns (though not common). We actually don't even request financials if it's less than $500k in total exposure. What do you do for work? I also agree, the accounting is a great benefit to have, any business form from IB to Corporate Credit/other forms of Corp Finance use accounting methods.
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