Pls. help me compare the two offers, assuming base salary and commute are the same and no biased preferences - Senior Analyst at a credit rating agency (S&P, Moodys) in the structured finance team - Senior Analyst at a top IB shop (ML, BS) in the Credit Derivatives team Pls. provide comparison on the following grounds: - Safety (lower probability of layoff) - Learning (I am relatively new to credit derivatives; have more experience with structured finance) - Earning potential (how does the bonus compare between IB and Rating agencies) - Work culture (sweatshop vs. cool place to work; beuraucratic, etc.) - Benefits (gym, training, etc.) Is it true that the org hierarchy is different between IB shops and Credit Rating agencies (eg. Director reports to VP in the latter). If you know, list the typical hierarchy, pls.
safety (lower probability of layoff)? remember what happened to Andersens as a consequence of them signed off on a bunch of dodgy audits? now what do you think might happen to the rating agencies as a consequence of handing out AAA ratings to a bunch of dodgy credit derivatives products/funds? in theory - credit rating agencies are supposed to be boring business with low pay - bit like index funds. Remember they’re owned by publishing houses - they are just information agencies essentially. In practice they’ve evolved so now they’re all on the payroll of the IB industry - selling AAA ratings to the highest bidder - so it’s big yachts and bentleys all 'round…or at least that’s what they’re aspiring to. when the dust settles, you’re much better off in IB. The fact that credit rating agencies can even seriously compete for talent is a big worry in itself…the very fact that you’re even asking the question speaks volumes… agencies are probably a great place for training for a few years if you are young - but look at it as just training for the main game…
null&nuller Wrote: ------------------------------------------------------- > > in theory - credit rating agencies are supposed to > be boring business with low pay - bit like index > funds. > > when the dust settles, you’re much better off in > IB. NN, when do you think, the dust would settle ? It is better to be in a boring job for next few years, rather than being in the midst of a tornado. I think, Rating agencies will for most part, get away scot-free. They will get regulated, but nothing more. (Remember their disclaimer: “Any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision.”)
Get as far away from Structured Credit as you can. How can they even be hiring after all the layoffs they’re doing.
Get as far away from Structured Credit as you can. How can they even be hiring after all the layoffs they’re doing.
Our BB IB has a group of guys from ratings agency. Most of them aren’t too impressive. I think the agency work would expose you to only a very small slice of the overall picture: how to evaluate risk of a given CDS (or other credit product). On the other hand, a competent banker would know also how to apply one, how to predict price movements, how to choose among different risk managment products, etc. I have to imagine exit opps are much better out of the IB.
greatguy Wrote: ------------------------------------------------------- > > - Benefits (gym, training, etc.) Well IB would normally have the superior onsight workout facilities. But some of the Rating Agencies I heard will give you discounts to apply to local gym memberships. So I guess that would make it a tought decision.
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DarienHacker Wrote: ------------------------------------------------------- > Our BB IB has a group of guys from ratings agency. > Most of them aren’t too impressive. > Ouch!!
All the credit agencies are laying off like mad in their structured finance groups. That whole career path and industry will be shrinking in the short term and you’ll be competing against all the people who’ve been laid off. I wouldn’t go that way. Also many people who go to credit agencies use it as a jumping off point for IB, so why go to an intermediate stepping stone when you can go straight there. My 2 cents.