I saw a couple positions popping up as Country Risk Analyst in Credit Risk at BB banks. I apologise if this is not the right forum - I noticed a few past discussions for Credit Risk had been here, and it wasn't really obvious to me where else it ought to go.
My background is in macroeconomics, I have the necessary qualifications, some central banking experience and passed the CFA exams. I want to go into the investment banks because I think it'll be more fast-paced and exciting, more opportunity to take on personal responsibility and, down the line, would be interested in macro strategy for the buy side.
So in light of that, what would be your guesses for Country Risk Analyst roles? The work looks interesting: macroeconomic and political analysis and the relation to various asset classes. Reporting to management on country risks, setting exposure limits, that sort of thing.
But would there be much opportunity to take personal responsibility at this level? And do people move from risk into buy side roles, or is the skills profile just too different?
bump. would be really interested in hearing others' idea on this. did you apply or reach out to any one at the BB regarding the position?
I sent out an application, though that was only a couple of days ago so I haven't heard anything yet. But yes, it would be great to hear anyone's insights!
This is the role specifically within finance that I would enjoy working in - most in CR roles that I know were directly recruited from SAIS, Fletcher, KSG, or SFS and have prior central bank, imf, world bank, state dept, or cia experience.
I'm assuming the OP saw openings at JPM, Citi, or MS as those are the places I have seen openings in recently for this.
This is a very interesting role for those who want to do EM from a macro perspective. That said, it does get old quickly BC you’re not in a revenue generating function: setting limits for risk vs. taking risk (latter is more exciting and you get paid more). As such I think it is a good spot for ~2 years before you look for other opportunities. Buyside moves are not unheard of but you have to do the heavy lifting yourself. To differentiate yourself as a country risk analyst make sure you do analysis vs. being a news reporting service. For example knowing how to forecast debt to gdp under different macro scenarios by calculating a countries financing needs for the next year vs. taking last years debt to GDP and reporting it “will be about the same.”
Thanks - is the culture in the groups as such that people can stick around if they do decent work? Or is there some churn with people being told to leave (even if they are doing ok)?
You can definitely stick around if you are doing decent work (and in many cases even if you are not). Definitely not an up or out type mentality. It more has to do with you wanting to get out, though some folks like the cushyness of it- decent pay, intellectually stimulating, not too demanding pressure or hours wise. Not too dissimilar from rating agencies in that respect where one portion are lifers and others are just passing through using it as a stepping stone.
Thanks for the insight. Am I right in assuming that these roles are considered 'middle office'? I don't get into the whole f/o,m/o,b/o dick-swinging thing - i try to analyze a role based on its merits and if it is a good fit for my skills and life aspirations.
It is harder to categorize country risk but if forced I’d say middle office. That’s really idealistic of you, but in reality in the scheme of macro country analysis as a country risk person you fall lower on the pecking order in terms of prestige, pay, “power”, intellectual stimulation than economic research analysts and macro traders at the bank while not doing something dramatically different. On the other hand while not having as much pay or prestige as macro focused sales guys your work is a lot more intellectually stimulating. There is a reason a lot of people from country risk try to get into the aforementioned roles or on the busyide, but if the things I mentioned don’t bother you then it doesn’t matter. That said there are not enough seats for everyone that wants to do EM/macro research/sales/trading and one of the best roles for those who can’t get a seat is country risk (or ratings agencies, multilaterals, central banks/finance ministries) as it allows you to transition later. Definitely more upside than almost any other middle office role- for example you could start "behind" a guy on the sales desk but in 5 years you probably have a better chance of working on the buyside than him.
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