I was told credit or structuring job market is horrible. What is credit job market? Isn’t it nice if we get a credit job now and wait for the market to recover to make big money?
Personally, my bank is bulking up on credit and I think many other banks are doing the same. As a credit officer you will look at different exposures the bank has, track performance, do write-ups, go along with structurers on annual due diligence trips. In a sales area that is still originating you will go along on DD trips, approve (or deny) credits, ensure the structure is sound…etc. Even in a downturn banks will need credit people to maintain the current portfolio. We have at least 1 opening at my bank, but only for a senior credit person (10+ years of exp.)
I’m not quite sure what you’re saying or asking, but let me answer what I think you’re asking: The job market with respect to the credit markets (broadly speaking: bonds and credit default swaps) is pretty poor right now. Credit spreads have blown out over the last several months and left many desks in the red. Yes, that will probably create an opportunity to make money going forward, but you’d have to be in it now to make the money. The ones that will really see the upside are the ones that just got smacked on the downside; senior people on the sell side and buy side that are in the credit space.
To add to FI’s comments - one thing to consider is that for the past cycle (2002-pres) it has not been all that tough to make money in credit (don’t jump down my throat yet, Im just trying to make a overly simple statement). Spreads largely contracted, and for a long time (of course, there are setbacks, I know this is a very broad statement to make) if you were long credit and up until recently, short vol you made money. A lot of folks bought relative value based on “the rating” and put all their faith in the credit ratings agencies. Now, there are some bright people at those shops, but the recent widening has shown that you need a second/in-house opinion. Buying based on “the rating” is what got people in trouble. It is my feeling that credit analysis as a trade will make a good comeback. Needless to say the large shops out there all have their folks who do this, but they will eventually look to hire more (particularly as they look to get back in the market), and as you filter down to the small and medium sized shops, they should look to bulk up staff. Of course, i’m biased.
I didnt mean to make it sound easy. Hindsight is 20/20 and I was early in thinking spreads would blow out, so we had some tough quarters. But, that was the general trade for a long time. Just wanted to make it clear that I wasnt trying to sound like this is easy work, its not.