So the threads about CIB (Credit & Market) Risk are very dismal and are basically arguing about FO vs. MO, but I wanted someone to shed light on the program itself. Because of my school and connections I can get not the CIB Risk Program, but it will be my Junior Year so I want to turn it into a FT offer and want to have a better idea before I apply, shadow analyst, etc.
So basic questions:
- What are the hours (in comparison to pure IB)? How much better? Is it worth it?
- Bonuses? Compared to IB?
- Exit Opportunities? Same as IB or slightly less (I'm thinking HF more than PE).
-Interview Questions for SA? Any technicals? Or is it basic things like "when did you take a risk?"
- Major Differences between Credit and Market. (Hours/pay wise)
Lastly, I have opportunities in Treasury Servies and S&T, but really like the CIB Risk Program, because it is very unique at JPM as compared to other BB's.
If I don't go JPM, I will most likely take a Treasury Services role because of the hours and decent pay. Any recommendations on this?
I have a Series 6 and Series 63 License, which will make it easier for S&T, but those licenses are kind of useless for many S&T roles. I honestly like the eat what you kill mentality, because I have experience in the field.
Credit Risk Group at JPM Explained
User @oLookAbear, a corporate finance analyst, shared a detailed post about their experience in the group:
Hours for Credit Risk
Depends on group - Corporate Groups (TMT, CHR especially) usually work the most, FIG Groups more relaxed (Asset managers/hedge funds work the most). Hours can vary depending on deal flow/staffing issues, but usually around 8/9am-9/11 pm for moderate groups and later for the busier groups. Most corporate analysts usually come in on the weekends and some FIG analysts do as well (if you are on a deal, usually you come in from what I've seen). It really depends on the group/deal flow/staffing. Hours are better than JPM IB most of the time unless you are on some megadeal.
Exit Opps from JPM Risk
Less than IB, but people do well. I know a lot of people that went to M7 and other top business schools. You get some exposure to modeling, but usually only the credit POV/DCF. Some people internally lateral, some go to credit funds, some go to corporate development/executive training programs/portfolio risk, some get promoted, etc. Others do manage to get into PE/HF, buts it's not super common. Best way to check is just to do a Linkedin search.
Bonus Pay for Credit Risk vs. Banking
Base/relocation same, bonus is at a slight discount ($5000 from what I hear) to IB for analyst years. Obviously as you go up the totem pole the disparity grows especially post-associate years. Much better hourly pay in my opinion.
What is a Credit Risk Interview Like with JP Morgan?
Interview: Analyzing/valuing a company, financial statements, behavioral, credit issues, your resume, etc... Prepare like an IB interview and you should be fine. There are some IB risk interviews in the WSO database.
I guess I can't post links, but if you Google "focus on the downside, WSO" you should get the forum thread. That was helpful in getting a basic overview of credit and what you might be doing.
What is Working in the Group Like?
Credit/Market: In IB risk you basically work as the credit analyst with a senior credit banker on the deals in which JPM uses its balance sheet to contribute to a facility (ex. acquisition financing, revolving credit facilities, term loans) and perform annual reviews on the portfolio of companies you have assigned to you within your group. If you are the FIG side, you might monitor some of the trading facilities that your companies also have. It has many of the functions that corporate banking at other banks have (you do talk with clients), which is a good experience considering JPM gets invited to a lot of deals/facilities.
JPM Group Culture
Other: All the people I met were very nice and the culture is great (at least in my group and most other summer's I talked to felt the same way). JPM is a great brand for whatever you do end up doing. Your training is the same as Banking.
Read more about JP Morgan Chase on the Wall Street Oasis Company Database.
Read More About JPM on Wall Street Oasis
- JP Morgan CIB Risk First Round Interview
- JPM CIB Credit Risk Groups
- JP Morgan Junior Investment Banking Analyst Program
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