Career advice: DCM vs Credit
Hi everyone,
Recently graduated from a non-target and grateful to have received two offers but having trouble deciding between the two.
1: DCM at a Tier-2? bank (HSBC/BNPP/DB/...)
Benefits:
- Good dealflow (although FIG/SSA focus is stronger)
- Higher overall comp
- Exits could include LevFin
Cons:
- Much worse WLB and worse team culture
- Not much modeling, so potentially a pigeonhole career?
2: Credit analyst (under IB/CB umbrella) at a BB (BAML/JPM/Citi/...)
Benefits:
- Much better WLB
- Some modeling and credit & financial analysis of counterparty / exposure through various instruments & loans
- Could open doors to private credit / direct lending roles in the future, maybe even LevFin?
Cons:
- Lower comp
- Also a risk of pigeonhole within credit roles?
The credit analyst role at a BB is not really a credit risk role, but more of deal-exposure role, with active involvement in primarily corporate banking transactions. There's some modeling, but not much exposure to the public markets and we're focused more on existing lines.
I'm interested in leveraged finance, private credit, or direct lending roles, and personally at a dilemma between which would provide me better skillsets without pigeonholing my career.
Any thoughts? (thanks)
Difficult from both to exit to PC as you will lack in LBO execution reps with highly levered structures. Plus the modelling in corporate banking will be leas intense as it is more relationship lending. Your best bet is trying to pivot to LevFin.
Thanks. Any idea which would provide a better ground to pivot to levfin? seeing DCM would provide me with FO / debt markets experience but credit could be better for learning fundamentals of credit analysis used in levfin.
DCM 100%, It's (relatively) easier to jump from FO to FO vs. MO (where most credit team sits) to FO
All debt product groups are pretty much the same you have to have decent credit analysis skills as a junior (analyzing docs) - LevFin don't really do serious modeling in most banks anyways - if someone tells you otherwise, they are def lying.
I think this is a no brainer there. The DCM role is FO. The Credit role is MO. If your goal is FO, take the FO / DCM role
The credit analyst job that you describe not to be credit risk is indeed a credit risk role, no matter how you want to spin it. Credit risk is arguably better than DCM in that you are purportedly doing some amount and extent of fundamental credit work. But know that whatever "fundamental analysis" you end up doing would typically be skeletal. Aside from maybe JP IB risk, I don't know of a single other BB where a credit risk position involves legitimate analysis. With all that said, if all you have is DCM v CR, I'd choose CR unless that DCM position works closely with levfin and you get to do some sort of modeling/cap structure work.
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