2 year Credit Analyst looking to move into IBD

I'd be interested in hearing response to this as well. I also completed a formal credit training program

Very curious as well. Any input is greatly appreciated.

And OP...just curious. What do you mean by "end of the road"? Is there not much of a future in commercial banking? What is typical compensation look like down the road. Is IB really that much better?

jiggider:

Very curious as well. Any input is greatly appreciated.

And OP...just curious. What do you mean by "end of the road"? Is there not much of a future in commercial banking? What is typical compensation look like down the road. Is IB really that much better?

To answer your question breifly... Here are a few reasons why I am trying to move out... 1. Sub-par exit opps (only dcm and lev fin, maybe) 2. Slow-paced environment 3. Not a competitive atmosphere among analysts 4. Lower-tier compensation compared to other areas of finance

I wouldn't let those thoughts discourage you if it's where you want to end up. There are plenty of positives to cancel these out. PM me if you have anymore specific questions.

I know two people who have successfully made the transition from a credit analyst to IBD analyst; however, this was achieved through networking extensively. One of them was in corporate banking credit and the other was in commercial banking credit.

I know a guy who made the jump from BB corporate credit to IBD and I'm making the jump as a summer in credit to banking. Like mentioned above, networking is key.

If you're talking about WF Credit Management Training Program doesn't that put you at the Associate level?

maybe you'd have an advantage to a specific group in IBD? like Lev Fin? im not sure, just suggesting that maybe a targeted search would be better..

Is Citi close to Wells' cigar. Lol

In my opinion, waste of time. With an MBA in finance, you should be able to leverage your career center into an associate role as long as your school is excellent. If it's not excellent, your options are much narrower.

Also, be careful of pigeonholing yourself. It's hard to transition from another part of a bank into i-banking.

Answer is no

I would suggest that given the fact that you already have your MBA, don't try to take a enroute to something.

Just go directly for it. It might be hard but not impossible.

YOu don't have much time to waste in a career thats not gonna get you anything.

does he mean like credit research analyst??? that would be a pretty good gig.

I don't know....I agree with Ziggy - you should be able to get straight in given your MBA. Trying to move sideways could be tough, depending on where you want to end up. I know that we would be suspect of a 'credit guy' trying to make the move over to M&A for example...personality/ approach to work etc are seen to be quite different

I would be greatful, if someone could comment on the salary too.

How much networking opportunity do you have as a credit analyst at a BB (no secret here, this is Morgan Stanley). I have an offer to join this group in my country (non-UK). How would this contribute to my experience?

I worked at a BB in credit for my first 2 years. About 5 or so of my analyst classmates moved into ibd as 3rd years after their first two. A couple others lateralled into IBD during their 1st year. So, clearly it is possible to transition. Depending on what kind of work you're doing, there are opportunities to work with and network with people in the ibd. Transitioning might be tougher though since it sounds like you're in a satellite office.

And salary was same base as ibd and ~50% of ibd bonus.

I'd be interested to hear about any useful resources regarding corporate banking work, i.e. similar forums, career guides, websites, etc. I've been doing research and using the search function here on WSO, but info is somewhat limited so far.

Do you previous posters use anything in particular? Just WSO?

Any input is appreciated, thanks guys.

Happens quite a bit. I mostly see it though where credit people move into either leveraged finance or the industry groups that they cover in credit.

It's tough in this environment though.

To make things "worse" I would analyze investment funds and not merger or LBO deals, so I guess this makes my situation even more complicated.

Then my next Q would be: what is the possibility of transferring to London and do LBO and merger credit analysis, after a year or so, if I am top performer at my location (satelite office). Does anyone have insight on this? Would be appreciated a lot!!!

I didn't work at a universal bank so can't comment on what the internal politics/process of making a move like that is, but several of my friends have made the jump as 3rd years (some have had to take a step back to 2nd year).

Not sure how much I can help, but PM me and I can discuss it with you further.

Thank you for the comments so far!

To what extent do the following things put me in a disadvantage: 1. the work would be credit analysis of investment funds and NOT lending activity 2. the work is in satelite office and not London

How much would it be possible to work in London and doing lending related credit analysis after a year, or two in my home office?

Dude,

Why are you making things so complicated?

I read your posts and it becomes clear you don't want to do credit at all. Also the sector you are going to cover won't really contribute to your move. Please bear in mind credit is a support function.

MS is a great brand name and very prestigious but in the end of the day the skills you are going to gain in 3 years time in credit are not usefull for your ultimate goal.

Let me be honest with you , moving in this market to ibd from credit will be very very tough, even in normal booming markets it will be very very tough depending on politics etc.

Why would you spend 2-3 years of your life doing menial meaningless work which doesn't contribute to your goal to be in IBD?

Credit is a very very important function for a bank but it is not usefull at all if you want to be in IBD because you don't structure deal, you don't pitch, you don't build financial models etc etc Moving to IBD will be difficult.

It's a very important function for a bank and a very good stint for someone who wants to be a top AAA risk manager but clearly that's not your goal. I think credit is not for you if you don't want to be a risk manager and get pigeonholed by headhunters.

It appears to me you only takes this offer because it's MS. Remember being able to say you work at MS doesn't make you feel happy. Your friends at local banks or DrKW, RBS, Santander, WestLB,Fortis, HSBC, Calyon, SocGen, ING etc alike may do deals, travel a lot, do lots of financial modeling and you are just doing risk mgt.

I would suggest you do the following:

1. Join a local commercial bank or other investment bank (if possible, apparently there are satellite offices) in your home country in Europe in their IBD, having the relevant M&A/financing skills from the beginning is much more useful and move to a BB IBD in 2 years.

2. Join a top 5 consultancy firm for 2 years , take 1 year for 1 yr MBA (e.g. INSEAD/KELLOGG/London Business School) and move to a BB as an associate 1 in IBD

Having the MS offer in your pocket, it should be easy to get offers in IBD at local commercial banks or top 5 consultancy firms.

Both options will bring you to a top tier BB IBD in 2-3yrs if that is really your goal.

Don't waste the best years of your life in a menial support function if it is not your passion, you will not have the top performance required if something is not your passion at all.

Perhaps Genghiskan can confirm this?

It's definitely possible. I worked in more of a loan products group at a BB before I transferred into IBD. The markets are a lot worse right now (I did this at the peak, back in late May of last year, so that definitely made it easier), and that might hinder you a little bit or a lot. You will definitely have a skill set that is attractive to IB programs, but they'd most likely make you a first year analyst.

My best guess is that whenever bonuses go down this year, and more people get bottom bucket (aka the indirect force out), or middle bucket becomes much less desirable, analysts at your BB will leave. They will most likely need a quick fix (at my former place of employment, they didn't post for new off cycle IBD analyst positions - they hired through headhunters and networking), and you could slot in there. In between March and July, I would think it'll be slim pickings.

And by no means is it a guarantee they will want to fill all the slots for analysts that quit, as they will have new ones coming in. Your prior IBD training though should help you though.