Posted in: Experienced, Switching Sectors 27 January 2012 5 answers
Antropony

Question: Breaking into FIG coverage teams

I am an associate working in a FIG team in one of the rating agencies with 3 years of experience. I have good understanding of banking industry, key drivers of their financial performance, funding and capitalization structure and the specific regulations and requirements they face. I have also completed valuation and M&A courses covering valuation and merger models for banks and insurance companies. Do you think there is any chance to break into FIG M&A or any other investment banking team covering FIG with rating agency experience?

Answers (5)

  2. It would be hard in the current environment where there are very few jobs around. In a normalised environment (if “normality” returns), i dont see why not. The skill set is easily transferrable – just get up to speed with powerpoint. You’ll likely be as good as, if not more advanced in terms of financial analysis than a M&A associate / analyst with equivalent experience but they’ll probably be better at excel and making nice powerpoint presentations (that contains limited analysis but a lot of financial reporting and spin). Good luck.

  3. I actually think you have very limited chances. You face competition from business school graduates, Big 4 transaction services people and financial services strategic consultants, all of them being more preferable in my view. I think you are better served focussing on credit analysis of banks and insurerers within the credit rating agency, do CFA and then move to asset management or sell side research as credit analyst for financials. This is a good area and could develop into a hedge fund role if you are good and lucky.
    Best wishes

  4. maybe u can consider ER firstly rather than IBD.

  5. forgot to say, or maybe go to banks treasury team.