credit risk

INTERVIEW/Q&A TUESDAYS: The following is an interview from earlier this year with Credit Risk Associate Pirho (he is also available to answer your questions) See Part 1 Here Are you a professional and want to do an interview? View our interview template here and then email me your responses to [email protected] General Advice What is the one tip you would give to current students (ugrad and/or grad students) to help them succeed? Work on your presentation and communication skills. I interview so many kids with great resumes that can't say what's on their mind or convey an idea

23 Nov 2020

I just received a full time offer to join a large (yet slightly unknown) insurance firm's Investments team in NYC. the starting salary is on par with "high finance" in NYC and I'm not entirely sure what bonus compensation looks like, however I am a bit worried about if working for an insurance firm will have any negative consequences on my future? I go to a non-target school in Washington so even receiving an offer to join the buyside in NYC straight out of college is big for me, and I know investments and AM is what I want to pursue, but i have been recommended by a few of my peers and alum

01 Oct 2020

Congrats, you've made it into finance...in the middle office. What is the middle office? Definitions vary, but think risk management, certain accounting roles, corporate treasury--broadly speaking, you interact with the business divisions on externally-related (i.e. client, funding) topics, but don't directly interact with the client. Most importantly, you don't make the firm money. That's besides the point--better explanations are elsewhere. What does the middle office actually do? Here's a day in my life (specifically, credit risk management as an analyst/associate). 6:20 am- Rise. My office

07 Jan 2017

About - Currently a graduate student in Applied Economics and Management with concentration in behavioral finance at Cornell University - Prior to the Masters I worked for 2 years at Barclays Investment Bank in Glasgow, UK in the Risk department (specifically focused on portfolios with securities lending, repurchase agreements and prime brokerage products) - Graduated in 2017 with a BEng Degree in Marine Engineering and Naval Architecture and was heavily involved in energy-related issues - also participated in and won the Business Enterprise Pathway Competition with a team of 5 other students

25 Feb 2020

Hey everyone, one of my friends has a superday with JPM's CIB Credit Risk program coming up, and just wanted to know what to expect/how to best prepare. What will the technicals be like (similar to banking or more of a focus on credit)? Are the behaviorals just the standard behaviorals? Anything else to look out for? Thanks in advance!

27 Jul 2020

Hey guys, I just came across the following job related to counterparty credit risk (apologize for copying the whole text - I am not allowed to insert any hyperlinks) Key Responsibilities: Manage a global team of In-business risk professionals on various aspects of counterparty risk monitoring and controls Monitor client portfolios to ensure that risks are controlled - primarily credit risk arising from market sensitive exposure and liquidity risk Work with Sales trading and clients to analyze client portfolios, propose counterparty risk limits and work with Credit risk management on getting

16 Jan 2021

About I've been thinking about doing a Q&A a while ago and finally have the chance to do so. Brief background 1.5 years as a Credit Risk Associate at a top IB - About 1 year as a Market Risk Associate at another top IB Q&A Happy to answer questions related to risk roles: - What kind of candidates are IBs looking for - How to prepare for interviews - Differences between different risk fields WSO Mentors Check out his mentor profile - click here

28 Oct 2019

Anyone have/willing to share any insight into this group? Looking for the usual hours, face time expectations, comp, culture, etc. I'm also wondering if anyone can explain what the group does. Sounds like it deals with credit risk associated with commodities instruments as opposed to lending activity, but I haven't had much luck finding specifics.

25 Oct 2020

Hi everyone, I recently received an offer at JPM in risk management as a SA' 22. My end goal is to break into IB. I may have a chance this summer to still secure a spot as I have been networking but I'm not sure. If I were to take the risk job and get on FT, does anyone have suggestions on breaking into investment banking? I have heard that some people move internally to LevFin.

25 May 2021

I'm currently getting to know how to conduct analysis of credit risk with Python, is there any project for newbie that I can start to put into my portfolio?

08 May 2021

Hi everyone, I'm a recent graduate and am looking for some career advice. I graduated from a semi-target school with a 3.95 GPA in finance. Right now, I'm in a temp role at a bulge bracket bank (Goldman Sachs/JPMorgan type) and am mostly working on regulatory capital reporting (CCAR/Basel III, etc...). I'm interested in possibly making a jump into risk management (as an analyst) after my temp role ends, but I'm not really sure it's feasible given my current back-office position and with limited internship experience besides that. My other option would be to go to an MBA or Computer science

07 May 2021

As the title suggests, I got three internship offers and I am split between the first two. I am worried about career prospects in S&T but work in credit seems to be a little less exciting. I am hoping to either break into research in a bank or break into a HF (Event Driven/Macro). I am leaning towards S&T but again, I would like some advice. I enjoy learning about the markets but it seems that I'll get more tangible skills from the credit risk internship.

19 Feb 2015

Was wondering what the major differences between a Credit Risk Management and Credit Analyst was??? Seems like CRM is more MO while CA is more FO, but was curious about the "typical" career path of a CRM analyst? Could it open doors for trading down the line? thanks in advance (hrs/pay/culture/exit opps would be appreciated as well if anyone has info)

19 Jul 2011

I recently received full time analyst offers from both credit risk and DCM at a BB (think GS/MS). I am not sure which is the best option for me if my long run goals are to go into industry coverage IBD or manage a corporation. Credit risk will give me solid training in corporate financial analysis. Decent pay with a good work-life balance. No modeling skills, very little client facing (aside from DD calls/meetings). Middle office position in bank isn't as highly regarded on the Street.

27 Aug 2012

Could somebody advise on some recent news that would affect a bank's risk division, and why this would happen?

30 Jul 2018

Hi everyone, I have been interested in working in investment banking since university but when applying in my second and final years, I had no luck. I was fairly well prepared, but just lacked the knowledge and experience, as my university course wasn't finance centric. I am still very interested in transitioning into the risk department of an investment bank, but I cannot see my route in at the moment. I worked in a central bank for a year for a job placement, where I worked in credit risk reporting for the trading operations, and I now have almost 18 months under my belt working in

20 Feb 2021

Hi all, Hope you guys are doing well. I go to a target in the UK and recently landed on a second round interview for a SA position in a BB risk team in London. Since this is in the midst of exam periods in the UK and they're not recruiting many, I'm guessing they're conducting a phone interview. What I'm wondering is--an interviewer asked me to have a paper and a calculator in front of me during the interview. I've done some phone interviews and had brain teasers from time to time, but without a calculator. What kind of questions do I have to expect? More advanced brain teasers? Accounting

21 May 2015

Hey guys! I'm new to WSO so sorry if information regarding this can be found elsewhere... Please redirect me if this is the case. I'm planning on applying for an internship within Credit Risk at J.P. Morgan for Summer 2021 intake and I was wondering if anyone has had much experience in this area (and/or JP Morgan) and can shed some light on what I could expect. I think insights into what Credit Risk involves, the culture and anything else you may be able to share will be brilliant for me to gain a better understanding of the area. If you've had internship experience with other institutions

15 Aug 2020

Recently been considering risk as a long term career. Does anyone have any info regarding Hours/Comp/Bonus/LR exit opps at the grad level and how they evolve over time. All info welcomed.

19 Jun 2015

I'm currently in a Corporate Treasury Risk function at a BB firm, trying to move into Credit or Market risk but it's been difficult to do externally. Most recruiters don't give me a chance since I don't have precise Credit or Market work experience, but I'm intelligent and passionate about having a markets-related role that isn't revenue generating. I just interviewed internally for a Credit Risk Hedge Fund Analyst role. Made it to superday and didn't get it. When asked for feedback the hiring manager said I was a great fit but could be stronger on my technicals/knowledge of specific role I'm

20 Jan 2019

I'm trying to learn more about xVA desks and improve my intuition around financial product knowledge and hedging. I have been given this as an exercise. "What are the CVA risks on a EUR/USD cross-currency swap 10y with Volkswagen" Is there anyone who could advise me where I could start with this? Perhaps an overview of the risks I might have to consider or point me towards something I can read to start getting to grips with this.

22 Jan 2021

First off, don't tell me it can't be done because I interned as a credit risk analyst at a BB over the summer and there were plenty of people who had moved from our department to IBD. One actually did the move while I was interning. I learned about the others through people who were currently working there. My question though is when do I start trying to make connections in IBD? I'm starting in June and I don't want to seem like I'm trying to get out as soon as I get there. How should things progress?

06 Jan 2014

Does anyone have insight on WTF the "Officer" designation is at Credit Suisse? This would be for a middle-office risk role. My best guess is: Exempt Non-Officer (ENO) = Analyst Officer = Associate Senior Officer = Senior Associate Can anyone corroborate this? I'm worried about taking a role that doesn't put me on the same track as other hires. I just want to make sure there isn't a dual-designation system like they have at Citi where Associate = Good Track and AVP = Screwed Over for the same exact job.

14 Jan 2015

I will be having the superday for the Credit Risk FT analyst position at a BB soon, and I would love to hear more advice on what I should expect for the final round. Would there be a lot of technical/accounting questions? I never took accounting cuz I went to a liberal arts but I have basic understanding of the financial statements and the connections among the three. Basically, what can I prepare in order to ace this round. I am very interested in this opportunity and therefore I appreciate it very much if you guys can give me some tips.

09 Nov 2013

I'm curious about the various ways that people quantify credit risk. So far, I can really only think of two methods for measuring credit risk: 1) Credit Ratings / Credit Scores 2) Estimating the likelihood that someone will default on a loan over a specified time period What else is there?

13 Mar 2012

Hi Everyone, I am looking at two options for an undergraduate summer internship: Capital Markets Origination at Citi and Credit Risk at Morgan Stanley. I know they are totally different roles so my decision should largely be based on my person preference but I'm still working those preferences out. Does anyone have any experience with or knowledge of either group? Citi's CMO group is a little unique in that it is outside of IBD and seems a bit removed from the technical work of IBD. Any input on either group would be greatly appreciated. Thanks so much

03 Mar 2012

My dad works in credit risk at WF and through networking i will most likely be getting an interview for IB at WF and want to work in the financial sponsors group. my dad works closely with people in FSG and a few people have brought up the possibility for a conflict of interest. do people who work in these fields think that a conflict of interest could arise and I wouldn't be able to work in the FSG at WF or have seen it come up before? I'm really interested in this group and my best bet is with WF b/c of the connections I have made there. Thoughts?

05 Dec 2011

Option 1: - BB underwriting (credit risk) team, focusing on leveraged finance transactions - Approve transactions or recommend alternative structuring to improve risk ratings - $115k base, 20% bonus Option 2: - MM credit portfolio management team (also credit risk), focusing on sponsor-backed names as well - Annual reviews for covered names; approve/process waivers/amendments for loans in the portfolio - Potential to do some underwriting for overflow names - $100k base, 50% bonus --------------- What should I pick? I want to eventually get into corporate banking or leveraged finance as the next step in my career. Neither of these options seems to focus on modeling. Which one positions me best for that next move?

09 Feb 2015

I recently accepted an offer to join an IB Credit Risk team at JPMorgan. I wanted to know if anyone is currently in this program. Any idea about how are ANALYST BONUSES compared to being in other teams in the IBD (such as M&A, Leveraged Finance, etc)??? What about exit opportunities? What about staying in an IB as an Associate?

24 Oct 2009

Hi, I am a rising sophomore at a umich ross with 3.6 gpa. I recently had an internship at a ibank in HK and felt as if this was not the job for me. The hours seemed long, and the work was so tedious - fixing typos, formats and etc. There was no real tangible work that I was able to doing that made me enjoy my job. I have recently been looking at middle office positions, especially in the market risk and credit risk arena. Is it weird that I want to work at credit risk despite all the hype about ibanking? Its the hours and the decent pay balance that just does it for me, I really want to enjoy my social life and risk is front office at some places e.g JP Morgan. What do you guys think? Am I being stupid or is this not too out of the norm?

04 May 2012

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...

02 Feb 2013

I saw a couple positions popping up as Country Risk Analyst in Credit Risk at BB banks. I apologise if this is not the right forum - I noticed a few past discussions for Credit Risk had been here, and it wasn't really obvious to me where else it ought to go.

26 Apr 2014

I have a Barclay's Capital Credit Risk summer analyst interview coming up this Friday in NYC and wanted to know if people know some of the technical questions they might ask? I had an interview with Wells I-B so I know the questions that are asked for I-B and have done plenty of research on I-B questions but wanted to know if credit risk questions for an internship would run along the same lines? thanks for the help.

23 Jan 2012

I have two offers: one from JPM's risk team and another one from Citi's Capital Markets origination. I am having a tough time choosing. I interened with JPM and I like the culture and I see there is much mobility. However, Citi is offering me a great front office role, but doesn't have much deal flow and has little transferable skills

27 Aug 2010

I am a sophomore at Baruch College majoring in Applied Math. And I am interested in a career and a summer analyst internship next year in credit risk at a BB IB. I heard that Baruch is recruited heavily for middle or back office. Front office not so much. Since risk is middle office I want to know if the BB IB recruit from Baruch for credit risk/ risk management?

25 Jan 2016

Does anyone know what the difference is between the IB credit risk analyst and the commercial banking credit risk analyst. The work they do sounds like the same such as assess the creditworthiness of counterparties. Can anybody help? Thx!

11 Nov 2016

So, my question is regarding equity research. My background is a mathematics one, from a semi target in the UK. I have managed to get into credit risk at one of the top BB banks (think JP, GS, MS) and am wondering what the best thing is to do to break in to equity research in a few years. I have been told by some contacts within the industry that the best thing to do is to take the CFA exams (to make up for my non finance/economics background) and apply once I have finished the graduate program in credit risk. But from online research a lot of people say it is really not worth the hassle.

25 Feb 2012

Any insights on whether Corporate or Sovereign Credit Risk for a BB is more reputable or has a better career trajectory? Which would look better when applying to business school? Which has better exit opportunities (either front office roles or outside the bank)? A friend told me that at Credit Ratings Agencies, sovereign rating analysis is seen as the highest on the totem pole, with corporate and financial product analysis being less desirable. Any help would be much appreciated.

09 Nov 2012

Hi everyone, first of all I want to appreciate again the existence of this forum that I have already benefited a lot. Being a new credit portfolio analyst for less than three months conducting research and analysis on the US industrial sectors using tools like First Research and Global Insight, I've got chance to get through the concepts risk folks have been mentioning, EAD, PD, EL, LGD, etc. which felt no longer strange to me. I'm just starting to wonder the alternatives of the career paths that I could pursue starting with my current role. I saw relationship manager and portfolio manager in some posts which sounded not bad. Can someone expand the alternatives and elaborate a bit about them so that I can get a flavor of the paths and sort of know why I would pursue any of them?

07 Nov 2012

If you had to pick either Credit, Market, or Operational Risk in one of the big 5 Canadian banks what would it be and why? Also I am interested in info about differences in exit opportunities, compensation details, what groups in risk management see high deal flow etc.

19 Feb 2016

Hello monkeys, I am a junior at a semitarget and received 2 interviews later this week for investment banking credit risk SA programs at top BBs. I did a cold resume drop online for these positions and really don't know anything about them other than what is written on the website, so can anyone point me in the right direction on what these programs entail, the interview process, what I need to know in general, what they are looking for, good questions to ask the interviewer, etc. sorry for my cluelessness, I have been mainly focusing on tradition IB in my interview prep. thanks for your help.

16 Dec 2013

Hi, Could anyone help me get an understanding of what a role in risk reporting involves? I'm believed to understand it is in the finance devision of a bank? Also, how does the reputation and work compare to that of other risk departments such as credit or market risk? Timpson

16 Apr 2014

Hi, I have a credit risk analyst role coming up at BB (GS/JPM) in few days and wondering what are some of the things I should brush up for the interview? I believe I will work closely with people on the trading floor. Thanks

09 Apr 2012

Dear All, I am attempting to measure general business sentiment using financial markets as a general indicator of them. Does anybody know what financial markets would give me the most insight into "market sentiment" or people's general expectations of the economy? Right now I am thinking of the price of gold, S&P 500, and Treasury yields (could someone shed more light on which term-time would be most affected/whether yield curve is affected?) would be good proxies for what I am trying to measure. Does anyone have any suggestions for more assets that might be worth looking at? Any particular

10 Mar 2011

So currently I am approaching my sophomore summer and I have an internship with a BB in Credit Risk, which I know is generally considered an MO role. However, I want to go into IBD rather than Credit Risk. My question is, would a sophomore doing credit risk look good during my search for an internship during the summer before my junior year? Do you guys have any advice on how to move from Credit Risk to IBD?

23 Apr 2013

I have the choice of applying for a Goldman Sachs operations analyst position or Goldman Sachs credit risk specialist? My goal is to work in equity research or end up in a hedge fund. Which position will help me achieve my goal?

10 Sep 2009

How do you assess the credit risk/worthiness of a counterparty that does not have financial statements?

11 Dec 2013

Hi There, I just accepted an offer as a credit risk analyst with JP Morgan on their CIB team this week and I got a call this morning that I need to book a plane to New York this weekend to start a month long training program with their investment banking team. I dont really know what to expect so I was wondering if there was anyone out there who has gone through this, or maybe a similar training program, that might be able to enlighten me on what I'm in for? Maybe if there are certain technicals that I should look to brush up on before arriving for instance? Thanks in advance for your input!

26 Aug 2019

Hello Everyone, I have been a long time reader of this forum and appreciate all of the both humorous and general advice for navigating careers within the higher finance industry. I wanted to to describe my current role within a firm and see if anyone can offer some potential next steps in developing my career / where you may have seen individuals with similar roles end up as I feel like I am at a standstill and want to make a move. Current Role Description: Think Credit Risk / Portfolio Management at a MM firm (KeyBanc/Jefferies/STRH) in a Large City Not NY (Charolette/Dallas/Chicago) Daily

25 Aug 2019

Hi, I have been so far a s/w engg with 8 yr coding exp but in different domains, I now wish to develop expertise in Financial Risk domain,and have completed FRM part-1, but I am not sure which type of risk analysis I should develop expertise in - Credit Risk or Market Risk ? Could someone help how to decide?

17 Jun 2016