Credit Research Questions

Is there anybody here who is in credit research? I am specifically looking at equity research versus credit research. The ins, outs, advantages, pay scale, etc. I have some more questions that I can PM/email you.

 

I work as a buyside credit analyst. The sellside research we get from banks is basically of two types: Corporate credit research is generally the same idea as equity research and covers individual names or on a sector. We are focused on HY credit so I can't speak as much to investment grade. The other type is what I would call macro/structured research, which presents ideas about the overall credit market such as CDS curve trade ideas, different asset classes, etc.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

I was wondering the same thing. The forums on here for research is a little specific in pegging down only equity research.

Macro/structured research sounds more interesting to me personally. Kenny, I've also heard people mentioned similar research roles as a strategist. Any ideas of places that make the distinction in the recruiting process for research roles?

 

Sounds like a great role to transition to the buyside (Especially if you are able to cover distressed names). Unlike ER, I believe that the credit guys generally sit on the trading floor so you will get a grasp on the trading aspect as well.

 
Best Response

I believe that their is a pretty big difference between regular credit research and FI strategy. FI strategy is more quant based from the positions that I've seen while credit research is more comparable to ER.

But I don't think it'll narrow your skills in that sense of not being able to find something else. I am also trying to work in CR, as I've done an internship and hopefully will be landing a FT gig soon. But CR is a good skill set for getting into AM or HFs as well. Not so sure about PE, but while it may not be as "door opening" as IB analyst or ER associate positions, I'd like to think that it is the next best thing.

In CR (vanilla research), there is more of a distinction between investment grade and HY/distressed research compared with the more sector distinction in ER.

But then again, a lot of this is my own opinion.

"History doesn't repeat itself, but it does rhyme."
 

To OP, you pretty much have it totally backwards. Credit research, credit desk analysts, and credit strategy all revolve around generating proprietary trading ideas. Guess what employers need that? Asset managers, mutual funds, hedge funds, etc. Your options are actually greater than if you are in a flow sales or trading role at a bank. Now THOSE tend to pigeon hole you much more so. Additionally, not really sure where you get the "no skill set" thing from. Research and desk analysts have fundamental company specific skills and strategists have macro analysis skills. Sales people generally have no transferable skills outside of relationship sales skills, and the vast majority of traders can make a market but heavily depend on bid ask spread for much of their p&l. Of course there are many exceptions out there, but you're working against the tide generally.

 

Sounds slightly ambiguous if it's a desk analyst role or publishing. Easy check, if on trading floor = desk analyst.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

Molestias culpa enim id iusto odit est quia doloribus. Exercitationem quaerat et qui corrupti quaerat ab id. Rerum in non ut ipsum sed. Eius itaque suscipit tempora fugit a odio odit iusto.

Adipisci dolorum et non ducimus. Similique assumenda itaque corrupti corporis doloremque ut consequatur. Qui soluta harum libero facere impedit in eos quo. Possimus maxime voluptas laboriosam ut culpa autem aspernatur voluptate. Mollitia vitae eos officia rerum at vel aliquam.

People demand freedom of speech as a compensation for freedom of thought which they seldom use.

Career Advancement Opportunities

March 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

March 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

March 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Citadel Investment Group 95.8%
  • Magnetar Capital 94.8%

Total Avg Compensation

March 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (249) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”