Hi all! I am currently contemplating a career as a credit analyst in leveraged loans or high yield at a buy side firm.
What should be the salary expectations at the beginning as junior with a CFA and over time? What about exit opportunities, can one ever into leveraged finance in an IB after?
If there are any other credit analysts here, what are your favorite and least favorite things about your job?
Thanks in advance!!!
Master the ratio analysis part.
I was a credit analyst for a while. My worst part is the box you get put into as a credit analyst. I think you can certainly go for a Lev.fin role. You need to network as hard as you can and start learning other aspects that you wont learn on a credit role. I.E valuation methods etc.
My favourite part was the hands-on experience. You get to truly understand business risk through understand their credit profile. It is a much more entrepreneurial way of looking at a business (as opposed to Multiples in an IB)
If you want to get into the Lev.Fin in an IB - I would do max 12-24 months as a credit analyst then look to transition. So start preparing for it about 10 months in.
Lev fin / high yield is a good space, salary will vary but over time it’s a good spot to be. Going to IB would be tricky, but in all honesty lev fin is not the worst place to be. If you’re pre-MBA and can go lev fin to good full time MBA then I think on exit you would be in a great position to do IB.
Thank you!