Breaking into equity research from credit risk
So, my question is regarding equity research.
My background is a mathematics one, from a semi target in the UK. I have managed to get into credit risk at one of the top BB banks (think JP, GS, MS) and am wondering what the best thing is to do to break in to equity research in a few years. I have been told by some contacts within the industry that the best thing to do is to take the CFA exams (to make up for my non finance/economics background) and apply once I have finished the graduate program in credit risk. But from online research a lot of people say it is really not worth the hassle.
I would really like to break into tech equity research, and have realised that a lot of the tech equity research desks are in the US, where it is quite common for people to have done an MBA (while not as common in the UK). Would people advise me to complete the graduate program and get into a competitive MBA, or take the CFA exams (or both)?
Thanks!
Chances are your bank has an equity research department. Why don't you develope some contacts internally and try to make the move, or at least find out what would be required for you to make the move. CFA is worth pursuing and will open doors if you are already working in finance. I can imagine your hours are not that bad in credit risk so clearing level 1 should be fairly straight forward. How long is your grad scheme by the way, 3 years? I can't imagine HR being thrilled at you leaving the scheme after a few months.
I would clear CFA level 1, wait a year and start reaching out to guys in your bank's research department. Try to set up an informal meeting to learn a bit more about your banks process and get your face known. After that, you might be able to make the jump or at least get a better insight into what you need to do to get in the door somewhere else.
The graduate scheme is 3 years, my plan is to leave after the graduate scheme, not a few months in ( do you think it would be a good idea to try and move before the grad scheme is over?). I had thought it would be harder to make an internal move, but I will definitely try to make some contacts to see if it is possible..
My guess is that it will be tough to move internally unless someone from the equity research department really wants you. If you have your heart set on equity research I would be trying to move after my first year. I was in a similar position to yourself (i'm UK based too) in that I took a role on a grad scheme in an area I wasn't particulary fond of. I used that year to get CFA 1 done and started looking for other opportunities. After I passed the exam and had 1 years work experience under my belt I found it much easier to move. I actually left my original grad scheme after 1 year and am doing something much better and more relevant to where I want to be long term.
With regards to the internal contacts, they may not be able to help you move internally but they will be a valuable source of information on how to get to where you want to go. At the very least they will tell you whether or not you need CFA/MBA for your career and might be able to point you in the direction of job openings.
Best of luck!
Anecdotally, I have met someone who came from an engineering background, worked in credit risk for a few years, got his CFA in the meantime and was able to do an internal transfer to a credit research team. I'm not sure how common this is but he told me that the things he did in credit risk were really similar to what he's doing now in research. I think internal contacts would be really useful because I assume that's how he got his name out when the team happened to be hiring. I also know someone that got into a really good research team from the middle office through internal networks (someone he knew in the middle office knew something in the research team that was hiring and passed on his resume).
Yea, I've heard the same that the move is not that difficult, the problem with what I want to do is that I would like to move into tech equity research, which I think may be a bit harder, especially coming from the UK. I will definitely start taking my CFA exams and trying to build up contacts, and see where that takes me..
I'm interested in hearing more about your motivations.
From credit risk trying to get into research?
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