Corp banking credit analyst vs Forensic advisory

Water Cooler Careers
#1

I’m in a bit of a situation here. This is not for grad roles by the way, its for experienced and Im a CFA charterholder. I have an offer to undertake a corp banking credit analyst position at a middle sized bank but growing and seems to work on some decent sized transactions, not massive but I think 20m to 500m mark. Now here is the kicker, the role is on a 1 month contract. The reason for this is that they are unsure about people of my background getting up to speed quick enough so want to trial it.

The other offer is a permanent offer at a pretty good advisory firm in their forensics, doing things like valuations, disputes, and other kinds of economic stuff I imagine.

So I am really wondering what I should do. I think I would like to have a go at corp banking, but then there is the 1 month thing. And how do I know if they are not playing me some way?

Any advice on the job you’d prefer and/or how I can play this

#2

Help me nuuuumi!!

#3

Can you ‘think’ about the advisory firm job for a month while you take the credit job?

Credit is pretty fun, I was doing some of that for a month at my last gig (see my damn the man thread).

If you cannot, just take the advisory firm role. You don’t gamble with your paycheck.

#4

I get that its a gamble. But at the same time, it would be nice to get out of advisory, and work for a bank. Was doing the whole big4 thing before, and had it a bit with that. Although this role is different. valuations and forensics type stuff.

#5

What you could do (dick move) is take the credit job and valuation job. Make the valuation job start date after the 1 month contract as a hedge.

#6

I’m a credit analyst at a corp bank…Big ticket…£90m - £250m+ bilat and syndicated stuff. It’s fairly interesting work although wont ever pay you loads of money. Depends what industry you work in…I do NBFI so Funds, PE, Asset Managers. If you work in multinaitonal corps then it’ll be qutie interesting too… BUt if you get stuck with healthcare or retail/leisure then it would probably be a bit dull.

Never been into anything forensic…but that sounds fairly complex…could be slightly more interesting too…

#7

Thanks pokhim. This in most instances wouldnt be that big ticket. However, it does get that high, and this would be dealing with the banks biggest 30 to 50 clients I believe. I think the industries that are worked with are mostly:

  • professional services

  • hospitality/leisure

  • aged care

  • manufacturers and wholesalers

  • property

Also, you say salary wont ever pay loads? Why not, what about if you move to relationship manager level?

Can you give a bit mroe detail also about what your job involves?

Thanks

#8

I hear you man. But they may wonder why I dont want to start now since im not working.

Secondly the partner at that job was really a great guy, and woud hate to do that to them.

#9

I like the fact that in banking you are actually behind and structuring the transaction.

Whereas, if Im in the advisory role, its 99 percent of the time going to be just analyzing transactions, not sealing any deals. which is a lot like my advisory role before was like.

Just pissing me off, since i have really strong experience and CFA and they are being so reluctant to make it perm.

#10

Moving into a relationship manager role is fairly common and if that’s something you would like to pursue then I think Credit experience is something that you really need. I have a lot of colleagues that moved into an RM role, I was an RM before working as a Credit analyst it’s just that I prefer the more analytical side….Or a sanctioning role.

You will be involved in deal management. You will collect due diligence, analyse financial accounts, comment on liquidity, NTA…debt serviceability…i.e. can the client make their loan and interest repayments? You will learn about your industry, the risk factors effecting profitability in that area and how to mitigate any risks associated with lending in that sector. You will also become an expert in your bank lending policy. The above culminates in a Credit paper, which is normally 10/15pages long + appendix (MI, Report etc). You will send this to your sanctioning committee and then be prepared to answer questions on your paper. This may be via a conference call, or an email. Some of the deals that I do will have to go through to a Group committee +portfolio management….we sit around a table discuss the deal, someone makes a decision on the implication of hold $200m RWA and whether it’s a good use of balance sheet. Other deals will be dealt with by 1 person, who won’t ask any questions, I call those deals a ‘no brainer’.

You will be somewhat involved in the documentation negotiation although there will normally be a internal legal who can say what we can/can’t do. Any Credit specific points, i.e. what constitutes a default, setting covenants/ internal reporting triggers will always come through you pitch to Credit sanctioners.

There are 3 people that are instrumental the deal; Coverage, he who wins the business, Credit Analysis, structuring the deal, Credit Sanction, who will say yes or no. These 3 people will need to be in agreement for any deal to happen. There is almost always some push back from the Credit Sanction side, so you must be confident in your opinion.

The above relates to new business, there are of course annual reviews of existing Credit lines, or if there are breaches in covenants /triggers that have to be reported to committee……

Hours are easy…pay is okay….but getting into an RM/RD role in larger corp is v.good money…also if you want to be a sanctioner…

#11

Great really appreciate that answer.

Do you know anywhere that i could find some sample credit papers to read and just some more info to study up on about it, besides the mergers and inquisitions posting about corp banking.