![]() ![]() This also means you get more interaction with these other companies. External Parties – Unlike corporate finance roles such as FP&A, in credit, you always analyze external parties such as customers, borrowers, or clients paying for ratings.These three categories have a lot in common: Investment banks, investors, and lenders then use these ratings in their analyses. Credit Ratings Agency – You analyze companies and assign credit ratings, such as Aa3 or Ba2, based on their financial performance, risks, and outlook.“Normal Company” Credit Analysis – You might determine customers’ credit limits (i.e., how much in products/services they can order before submitting cash payments) and how your company’s cash flow will be affected.Commercial Banking – It’s similar to corporate banking, but you work on smaller loans for smaller/local businesses, and you’re less linked to the capital markets.We’ve covered these areas in previous articles, so we’re going to focus on three specific, previously unaddressed “credit analyst” roles here: You could even argue that buy-side roles such as direct lending, mezzanine, and credit hedge funds fall under this definition. The same applies if you’re working in sales & trading on a fixed income trading desk, such as corporate bonds.Īnd if you’re in a more specialized role, such as structured finance or real estate lending, you might also be a credit analyst. This definition is so broad that it could refer to dozens of roles.įor example, if you work in Debt Capital Markets or Leveraged Finance or a closely related area such as corporate banking, technically, you are a “credit analyst.” ![]() The commonality is that they can be useful side doors into the finance industry, especially if you got started late, earned lower grades, or did not complete enough internships: What is a “Credit Analyst”? And What Do They Do?Ĭredit Analyst Definition: A credit analyst analyzes external parties, such as customers and borrowers, and uses qualitative and quantitative analysis, focusing on “downside” cases, to make lending recommendations, assign ratings, or determine credit limits and other terms. Unfortunately, they’re all somewhat different – despite the similar names. One of the problems with discussing credit analyst roles and the credit analyst career path is that no one agrees on what they mean.Īdding to the confusion is the presence of jobs with very similar names, such as “credit risk analyst,” “credit specialist,” and “loan officer.” ![]()
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