Credit Risk at a BB vs Corporate Banking RBC
Done almost two years at a BB in the Industrials Credit Risk group for the Investment Bank - got an offer at RBC Corp Banking. Wondering what has better exit ops after - stay another year at BB or do another 2-3 at RBC? Some pros and cons below for reference.
BB Credit Risk
- Pro: Lead deals
- Pro: BB name brand
- Pro: Network internally
- Con: Mostly IG/ or BB rated clients
- Con: $$$ as it is middle office
RBC Corporate Banking
- Pro: Front office role
- Pro: $$$
- Pro: More exposure to leveraged deals
- Con: Rarely a lead bank
- Con: Non BB
I’ve been a Relationship Associate for Institutional Clients for 4 years, and now I’m a Credit Risk Associate for TMT and Energy. Both I’ve done in BB firms.
Major Pros of Front-Office Work: 1.) Faster promotion as long as you rake in the clients and revenues/loans/deals 2.) Profit-sharing/performance bonuses are larger 3.) Exposure to different deals and even different products
Cons: 1.) Client interface can get too overwhelming. Expect to be contacted even on weekends. 2.) Can be a pro, but you’ll have to multitask and be very hands-on 3.) Expect to take responsibility for every screw-up that occurs at any part of the deal/transaction, even if it’s not your fault, per se. That’s the price of being the face of the bank.
If you’re going for a BBB to RBC, though, expect your client base and probably loan portf/deposit port to be smaller. I’d say less sophisticated deals and more trade-related, like omnibus lines, typical term loans, supply chain financing, receivables discounting, and the like.
Give it a try, though, as front office exposure is definitely more eye-catching on CVs, at least based on my experience.
What is your goal?
IBD? Research? Debt fund? Industry? Other? MBA? Don't know?
Likely a debt fund, but haven't ruled out PE/VC, just know those will be more difficult given primarily credit background thus far.
I would try and aggressively try and lateral to a MM bank for M&A. You could also try and lateral to your firm's industrials IBD team. I tried this transition and failed but saw other succeed. You may have to speak to HR and start as a grad again (probably worth it long term IMO).
Debt fund, PE & VC would be attainable from there and many others.
I've seen someone go from corp banking to an infrastructure fund, but I don't believe it would be harder to do it directly from IB credit. In my experience, IB credit is roughly equivalent to corp banking in a generalised sense, maybe slight edge to credit.
Facilis corporis magni qui corrupti. Necessitatibus quam ut quos blanditiis dolorem. Est et recusandae delectus odio sed doloribus sed placeat. At sit laborum a perferendis eaque sit facere. Dolores quisquam officiis sint iusto.
Et aliquam blanditiis enim illum. Libero quibusdam exercitationem optio corporis cum laborum omnis. Aperiam pariatur rem neque facilis minus nihil et. Esse sit impedit enim est ut. Nisi aut dolores illo et. Accusamus doloremque rerum et vero officia ab molestias. Magnam quia corporis adipisci repellat molestiae omnis deleniti.
Adipisci quia fugit culpa veritatis eius. Repellendus esse in doloremque dolor. Sint enim et qui tenetur aut. Et velit aspernatur autem nobis delectus esse et. Sed quaerat delectus qui reprehenderit eos in. Aspernatur iure id id sit ipsam architecto minima perferendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...