Mod Note (Andy): if you're a finance professional and would like to do a similar interview, please email me [email protected])
Current / previous position
1. What is your current job title and a one sentence description of your primary job responsibility?
I’m a credit research associate at an insurance company. I work with analysts in various corporate industries to maintain coverage of our existing holdings and to provide recommendations for newly issued debt.
2. What are previous positions you have held and how many years of experience do you have?
This is my first full-time job; I am currently a second year. I had previous internship experience at my same firm as well as in corporate finance.
Undergrad
a. Did you go to a “target”, “semi target” or “non target”?
Non-target all the way. My school had around 2,000 students but we always managed to launch a few undergrads into high finance each year due to a great alumni base.
b. What was the most useful thing you learned in ugrad that you apply in your current position?
Basic accounting. Being a non-finance major, I held off on taking accounting courses until the end of my sophomore year and into my junior year which, if I could go back, I would’ve started much earlier. It’s the bedrock of all financial analysis and forecasting and something a lot of firms don’t want to have to spend time teaching to new hires/interns.
- Side note: I remember going through a middle market IB interview and was asked a basic accounting question (something like “what would happen if we used $1 in cash to increase inventories?”) and I couldn’t even think through a basic balance sheet on that call! I knew I could’ve done it on paper (I’m sure finance/accounting majors are laughing right now), however, it gave me the dose of reality that I needed to master basic accounting.
c. What was the most useful thing you learned in ugrad that helped you get where you are now?
The usefulness of connections hands down. I had a few mentors that I met through networking events that were invaluable when it came to introductions, polishing my resume, and mapping out finance careers. Without maintaining a network, you cannot break in from a non-target. Shaking hands and telling your story at an event or two each year isn’t enough. I followed a policy of contacting links quarterly and, if geographically possible, meeting in person annually.
d. What was your most useful class and why?
Since we discussed accounting already, I’ll go with corporate finance. That’s when I started using DCF analysis which is a hallmark of financial analysis.
e. GPA?
Around 3.3. I’ll be the first to admit that this was a major barrier for some internships which was frustrating. I had to battle back from a 2.7 gpa (I played college sports so it took me awhile to figure out that I had to open a book to learn) but once I got through to a first round, it offered a great talking point for overcoming obstacles. I was also able to point out that my GPA shot up after I found my interest in finance and focused on those courses. Overcoming a lower GPA is tough, but if you’re able to do it, then all focus goes towards your first job which essentially becomes your resume instead of the GPA number.
f. During recruiting, how were you able to set yourself apart from other competitive candidates at your school?
Athletics helped quite a bit but again networking was huge here. My most successful interviews were always preceded by an introduction from a contact. Lastly, a few employers liked my small school background. I think this is one point that non-target applicants don’t sell enough: we help bring new viewpoints which good buy-side managers should desire.
g. What kind of internships did you have during ugrad?
Corporate finance, private wealth management, and asset management. The asset management experience happened to lead me to my current position, but I think my corporate finance experience during my sophomore year was a critical stepping stone. I was able to tell interviewers on the buy and sell-side that I had worked under the CFO of a growing tech company and created internal financial statements and analyzed results. Sophomore internships also allow you to easily say, “I had this experience and it uncovered my sincere interest in this other tangential path.”
MBA / Professional Certifications:
3. Did you get an mba (or msf or equiv) or are you considering it?
MBA thoughts are beginning to creep into the front of my mind. I imagine I’ll take this plunge following the CFA program, but I’m keeping my options open here (another $100k in student loans is terrifying right now). I think it’s a worthwhile as the last credential on an analyst’s resume.
4. Do you have any professional certifications (CFA / CAIA / CPA / CIIA, etc.) ?
I’m currently going through the CFA program and took Level II in June.
If so, how has that certification helped you in your career?
My firm effectively requires progress on the Charter throughout the early career stages. Beyond the requirement though, it’s been a great way to fill the gaps in my finance knowledge and uncover some new interests in other areas. I would recommend the CFA program to any buy or sell-side analyst that has the time to put in the 300+ hours per test (I don’t know how people with families can do this, but it’s certainly being done each year). Although it’s not a required credential by the buy-side, having the three letters behind your name on a business card instantly shows your level of understanding. CFA Charterholders also love other Charterholders when you run across them at meetings or interviews.
Breaking in
5. How did you initially “break-in” to the industry?
It was a long process for me. The first step was obtaining my sophomore year internship that proved to myself that I could go into finance (law school was the initial plan). Next was the junior year internship with the buy-side firm that ultimately gave me a return offer. Obtaining this internship was obviously the most difficult battle. I went through who knows how many different rounds with buy and sell-side shops. I knew the buy-side interested me the most, so when I happened to get lucky and get an interview (a manager reached out to a connection of mine for recommendations) I was ecstatic. Fortunately, I had gone through a few second and third rounds at that point, so I had my pitch and answers polished.
6. What were some of the main factors in getting the job position you have now?
Having a great connection was paramount to getting my foot in the door. I also sold myself as unique since I went to a small college and played sports. All firms focus on their “target” schools to make the process as easy as possible for them (going to the same career event each year, receiving the same resume books, knowing the programs, etc.), yet many are open to taking outsiders if non-target students can be vouched for by a connection.
Lastly, I was fairly aggressive when it came to getting my internship that led to a return offer. I was in limbo for some time after my first interview. I reached out twice over a month or two and received a sense of maintained interest, but with no real sense of urgency on their part. I ended up speeding up the process a bit by giving the hiring manager a call when I received another offer and said, “I’m really interested in your firm, but I just received another time-sensitive offer. I wanted to give you a heads up since you would be my top choice, and I wanted to hear from you before deciding.” I received the magical phone call with an internship offer from my favorite (and now current) firm the next day. I think some students can be a little shy when it comes to this, but I follow the policy that if you really know what you want, then you need to make it happen (obviously there’s a delicate balance here).
Current position - more info:
7. What are some of the specific things you do in your current position?
I spend a lot of time tracking the news and deciphering how certain scenarios could affect our holdings (earnings is unsurprisingly my busiest time). We also have a robust credit committee process, so preparing for presentations of an investment recommendation can take a lot of time.
8. What is a day in your life like during the workweek? Can you give us an hour by hour run down of your typical day?
* 7-8am Read the top financial news on WSJ and Bloomberg, catch up on emails
* 8-12am Support PMs when a new issue in my industry comes along
* 1-2pm Investment committee discussion
* 2-3pm Roadshows or outside analyst meetings
* 3-6pm Tracking new SEC filings and ratings changes, discussions with various analysts about upcoming deals
9. What is your favorite part about the job? What is your least favorite?
Picking my favorite part is tough. I would say I love digging into high yield companies – they always have the most unique operations and require more subjective analysis than a AA+ industrial company. My least favorite is probably the grind during the CFA exam season. This requires studying at least 3 hours a day during the work week and around 12 hours on the weekends, so it dominates your life. I think I lived off frozen meals for the final two months. But the light at the end of the four-year tunnel is bright.
10. What is the company culture like at your firm? What is the size of your firm?
Our team numbers around 100 people, yet the whole company is in the thousands. We have a pretty great culture made up of brilliant people that are also pretty humble. Upper management has been very thoughtful when it comes to creating our collaborative atmosphere and to encourage voicing disagreement in the spirit of accounting for every potential scenario and tail risk as a debt holder.
11. What type of person (what background / knowledge / experience / personality) is best fit to do your type of job?
Someone who is analytical and enjoys mastering specific topics. You also must be self-driven if you want to make it past an analyst role.
Motivation, Mentors, Other Career Paths, Etc
12. Did you ever have a mentor and who were some other influential people who helped you along the way?
I have had two or three. They were incredibly crucial to shaping my thoughts about finance and ultimately shaping me as an applicant. Mentors are always great to have if you connect exceptionally well with someone while networking.
13. Are the sacrifices you've made to date worth the benefit realized by you so far in your career?
I think about this every day. In the end, what really matters is creating a life that you’re able to enjoy currently (allowing for the early/mid 20’s grind) and in the long term. It’s easy to get lost in ambition and not step back and look at where you’ve made it and how fortunate you are to be in your current (financial) position. I’ve certainly sacrificed large amounts of time, a few relationships, and took on additional stresses, but I would do it all over again. I just try to keep in mind as I go forward that our careers are just a means to an end (mine is retiring by 55 and owning a private company).
14. If you weren't working in finance, what do you think you would be doing?
Law school with another $100k in debt. I think I still would’ve immensely enjoyed this career, yet I know I made the right decision to chase my finance inkling.
15. What keeps you motivated?
Myself and my goals. I have a strange inner paradox where I’m competitive but not against others, just with myself. This always keeps me going and trying to improve myself. Then my goal of early retirement is always a backup motivator during those longer days when opening another 10-k just doesn’t sound possible.
16. How much does money motivate you?
I would say it motivates me more than I would’ve expected. Sometimes thinking about the bonus will help push me to do another hour of digging into a firm’s story. It’s not my chief motivator but the student loans have to go away some day.
17. How much does someone in a role like yours make per year (base + bonus)?
I’m not sure what the average would be, but I would guess $90k - $120k depending on the geographic market. Starting out as a first year it’s probably closer to $80k plus signing bonus.
18. Have you ever considered leaving your job to start your own company?
I think about it from time to time, however, still being so young in my career it’s hard to think about taking the plunge anytime in the next 5-8 years.
Advice for students:
21. What is the one tip you would give to current students (ugrad and/or grad students) to help them succeed?
I know this gets said a lot on WSO but networking is crucial. If you’re from a non-target, then I’ll go so far as to say that it’s a necessary requirement for obtaining that key junior year internship or full time position. There is a surprising number of spots that are filled that don’t even get advertised on career websites or other spots. You need to shake hands and put resumes in inboxes before you even hear about new positions.
22. Any specific cold-emailing or cold-calling tips you can pass on?
I always cold emailed alumni from my college’s database. They were always helpful and eager to pass on knowledge. Just remember that they are talking with you to pay it forward, so respect their time and squeeze in as many questions as you can since some may have an unspoken one and done call policy (sounds weird but it happens).
23. Any specific networking tips you can pass on?
Ask if a new connection can connect you to anybody else in a relevant field. If you can keep branching out from one contact, then you can find yourself talking to a PM in no time if you have the social IQ.
24. What are unique things college students and young-professionals can do to separate themselves from the crowd?
Be authentic. It’s cheesy and simple but it works! Talk about your interests and hobbies outside of the markets. You connect on a different level and show your true personality. I tend to think most of us have a work persona and then a social persona. The sooner you can show someone both of these, the better off you’ll be.
25. What are some ways (in general) someone could best prepare for an upcoming internship or ft job at a firm like yours?
Following the news is great (know where rates are going and how it’s going to affect our space). If you have your desk assigned to you, then digging into big M&A deals and industry research is also great. I didn’t prepare too much personally, and I certainly don’t believe it’s crucial. I knew I was going to be taking the CFA exams, so I began studying for those next to the pool with a beer before I went full time (have to enjoy the final days before real life and student loan payments hit, right?).
26. If you review resumes (or have in the past) - what are some of the most common mistakes you’ve seen?
Fancy or unique attempts at formatting. When we sift through resumes we want to be able to quickly see information to check the mental boxes to move it over to the next pile. If you go considerably outside of the usual finance layout, then it might get shuffled into the recycle bin more quickly. The WSO template is great and is generally what I’ve seen followed.
27. If you review resumes (or have in the past) - what is something someone can do to make their resume stand out among the crowd?
Have a unique experience and a relevant experience. To the latter, the junior internship we all know is crucial to gaining some skill and demonstrating your potential, but it’s also important to show your interests. My not-so-unique experience was being a captain on an athletic team, however, this can be anything that makes an interviewer think “wow, they would be interesting to talk to.”
Feel free to ask me any questions in the comments below
