Credit analysts track various sovereign, quasi-sovereign or corporate credits (i.e. companies). They model the names they track along various accounting metrics to determine how the companies are currently performing, and how they might perform under different market conditions. They advise portfolio managers on what credits to buy and which ones to sell and when. Good credit analysts are able to anticipate market moves before they happen and steer portfolios to tidy gains while avoiding losses. Credit analysts tend to be very busy during equity earnings season (yes, even though they work in the corporate bonds space), and with new or potential new issues.
This is what a typical Credit Analyst's day might look like:
0700: get to work, track major market news stories and overnight
developments
0800: participate in the morning meeting with all other analysts
and portfolio managers present recent happenings in your
sectors, names you cover, market news items of interest.
discuss any relevant holdings in portfolios, summarize key
ideas for either increasing or decreasing exposure in
particular companies
0900: if on the sell side confer with other analysts that cover
till the same name or attend scheduled meetings or conference
1100 calls with management from companies you cover. ask
pertinent questions to firm up your investment theses
if on the buy side, talk to sell side analysts that cover
the same name or credit, ask for trade ideas either in
terms of relative value or others, and form firm
recommendations
1100: read research on companies, track market events to
till evaluate trade ideas factoring in portfolio holdings. keep
1500 aware of new issuances from either companies you hold or
in sectors you cover. pay special attention to M&A
activity as well.
1500: pitch your trade and holdings ideas to portfolio managers.
till clarify views on your credits etc. it usually helps to put
1600 out a note on names you cover daily before leaving work
with major news items and impending news stories. for new
issues, might want to advise portfolio manager on
allocations to put in for.
1600: build models for the companies you cover, test them with
till various scenarios if working on regional credits, might
1800 also want to model various fat-tail events to determine
how credits might behave
1800: work on daily commentary, send it out, head home
till
1830
This is what a typical Credit Analyst's day might look like:
0700: get to work, track major market news stories and overnight
developments
0800: participate in the morning meeting with all other analysts
and portfolio managers present recent happenings in your
sectors, names you cover, market news items of interest.
discuss any relevant holdings in portfolios, summarize key
ideas for either increasing or decreasing exposure in
particular companies
0900: if on the sell side confer with other analysts that cover
till the same name or attend scheduled meetings or conference
1100 calls with management from companies you cover. ask
pertinent questions to firm up your investment theses
if on the buy side, talk to sell side analysts that cover
the same name or credit, ask for trade ideas either in
terms of relative value or others, and form firm
recommendations
1100: read research on companies, track market events to
till evaluate trade ideas factoring in portfolio holdings. keep
1500 aware of new issuances from either companies you hold or
in sectors you cover. pay special attention to M&A
activity as well.
1500: pitch your trade and holdings ideas to portfolio managers.
till clarify views on your credits etc. it usually helps to put
1600 out a note on names you cover daily before leaving work
with major news items and impending news stories. for new
issues, might want to advise portfolio manager on
allocations to put in for.
1600: build models for the companies you cover, test them with
till various scenarios if working on regional credits, might
1800 also want to model various fat-tail events to determine
how credits might behave
1800: work on daily commentary, send it out, head home
till
1830
