Asset Based Lending
I just received an offer for an ABL portfolio analyst position from a large BB in NYC (BAML, JPM, WF). How is ABL viewed that sits within the capital markets group at a BB?
Is this a front office team? And what exit can one potentially aim for? Ideally, I would like to end up in corporate banking or IB.
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I was an ABL analyst at one of the banks you listed. It's very much a front office role with direct communication with clients as it is a relationship management position. In the ABL arm of these banks, you're a product specialist and you focus on the Revolver portion of the capital structure so you'll pick up some skills such as industry knowledge in your coverage and how to execute a deal that will directly translate to IB, but it's definitely light on modeling which you'll need to sharpen up for any transition to IB. The pay scale usually sits between the commercial and corporate bank as well.
Exit wise the opportunities are pretty diverse. Go to a direct lender, credit fund, commercial banking, corporate banking, and potentially the IB. I turned down an IB analyst offer internally because I got promoted upward in my line of business so I know first hand it's possible to make that move. My profile wasn't competitive to break into IB out of college, but if you put in the work you can get into IB through ABL. Hope this helps!
Thank you for replying so quickly. What was comp like as an analyst with bonus? Were most of your time spent doing collateral and credit analysis? Or did you have a lot of client interactions as well? And how often: weekly, daily, monthly?
I received a 5k signing bonus as an analyst with an 85k salary and a 20-25% bonus target. Which honestly is pretty good given the hours, the amount of golf outings & dinners with lawyers, and the ability to network with other parts of the bank. The big $$ comes from the promotions and movement to new business roles.
As a portfolio analyst you'll be assigned a number of deals to work on with a more senior relationship manager so depending on the amount you receive the time allocation changes. There's a lot of general "portfolio" work to be done such as monitoring document receivables from clients/agent bank, maintaining the data room, spreading financials, maintaining proper risk ratings, and participating in strategy discussions with the broader deal team (ABL team + commercial/corp bank + IB). The juicy parts of the job is working on pitches / amendments and this is where you sharpen up the deal execution skills I mentioned and understanding of the legal process. Volume ultimately depends on whether your set of accounts are active or not.
Client interactions are on a case by case basis. You probably won't be interacting much with a well performing company with limited need for capital markets services and limited monitoring. However, a company in a distressed scenario, you may be in touch with multiple times a week.
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