Summer BB Credit Risk or IB Boutique?
This is my junior year and I'm trying to decide whether or not getting some sort of IB experience will make or break me for FT recruiting.
I have an offer for Credit Risk Management at a large bank (think MS/GS/Citi/CS/ETC) for the summer. We basically put an internal rating on companies that we lend credit. There will be VERY little transaction experience, moreso just looking at companies that we lend and reviewing them. Not so sexy. Also note that this Credit Risk division lies in Risk Management and not in IBD or the Banking side...
So my question is, do I continue looking for IB experience perhaps at a boutique level at potentially lower pay/free? Since it's my junior year, I'm scared that this summer will determine my "fate". Don't want to be stuck in back/middle-office forever. How will Credit Risk be perceived when I recruit FT? I hope to network hard this summer. Although I do come from a semi-target, my grades are shit.
Any input as to what I should do is appreciated.
bump
I did credit risk at a BB, coming from a non-target, and it was very difficult to recruit FT; further, you should throw out the idea that you can just switch from Risk to IBD because most HR's at BB's block it.
I know not everyone has the resources to intern in NYC for low pay/free but if at all possible try -- a boutique will be a better opportunity if you will be getting transaction experience.
While I never wanted to do Risk FT, it was still a great experience as far as learning the financial statements, learning how to read 10K's and 10Q's for growth drivers, risks, etc., and being at a BB, you get enough resources that you can learn modeling on your own or probably find someone in your group willing to teach you. So, not the end of the world if you have to do that, just use the shorter hours to network with IBD professionals who can help you for FT.
I am not an expert, but it would seem to me that there are three things to consider: #1) Is the boutique a good firm, or will people cringe when they hear the name (like when people say they have a NorthWestern Mutual internship) . #2) If IB is your goal then gaining real world deal experience would benefit you greatly, where as credit risk would not be as relevant. #3) Risk is middle office :)
Take that for what it is worth. I am a young ops monkey.
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So I guess general consensus is to strive for boutique. I'll try to land an offer and reweigh my options. My biggest fear in life is being trapped in back office, haha.
Yes. For some people, back office is okay for them. I am dying a little bit inside each day lol.
Hi MoetGuy - last year, I did not take my SA recruitment too seriously and ended up at a solid middle-tier bank (think Nomura, RBS etc.) in Credit Risk. Even though it is in the middle office, you do learn a lot about debt, how to analyze a company, as well as its industry, and a little bit of modeling. Keep in mind, however, that there is a decent amount of ops work in Credit Risk (at least for the full-timers) and the salary disparity increases significantly as you progress up the ladder (versus IBD).
I spent a good amount of my time networking with HR and summer analysts in IBD as well as some first and second-years and eventually managed to land a super day and finally offer from the IB division during FT recruitment. I actually received a better offer from another investment bank and went with the latter. If you go with the BB over the boutique this summer, there IS a chance to land a great offer through FT but you really have to network your butt off, have a great GPA and a convincing story as to why you are making the move from risk to IB.
Best of luck
Thank you ahmadbarness! I also thought about this track. Hope you don't mind answer me a couple questions. Were you working on the lending side? How did you connect with people in IBD? Did you have the same training with them?
DWMO - I was working on the transaction side (so lending and capital raising). I connected with IBD interns and analysts at first through training and later through company events. It varies bank to bank, but where I worked last summer there was considerable interaction between CR and the IBD/Lending teams so I was able to build solid rapport with some of the younger guys. I could imagine at the top BBs it would be harder to get that same kind of interaction. There is always a way though. Best of luck.
Hi AhmadB.. were you still in ur 1st year as a credit risk analyst when u moved to IBD? *Did you have to start as a first year analyst in IBD *Did you have to go through training like first years do in IBD or was it on the job training? Thanks...
Manny, I only completed a summer program in CR then transferred over to IB during full-time recruitment in the fall. The later you wait, the harder it is to make the transition. Banks are usually more open to internal transfers when it comes to their summer interns.
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