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    (Original post by rboogie)
    excel
    Hmm, allot of BBs have template driven excel files for each companies they cover. Anyways, not many analysts use DCF for deriving the TPs anyway (mostly relying on P/E, EV/EBITDA, P/Bs depending on the sector).

    As my housemate who covers food producers stocks says, its more about the story rather than the numbers. If you got an interesting story to sell, you will make a hit.
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    (Original post by PortfolioManager)
    Hmm, allot of BBs have template driven excel files for each companies they cover. Anyways, not many analysts use DCF for deriving the TPs anyway (mostly relying on P/E, EV/EBITDA, P/Bs depending on the sector).

    As my housemate who covers food producers stocks says, its more about the story rather than the numbers. If you got an interesting story to sell, you will make a hit.

    producers? is he a lead? would I know him?

    It's about the story, but if you don't know the numbers, you will be crushed.
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    (Original post by rboogie)
    producers? is he a lead? would I know him?

    It's about the story, but if you don't know the numbers, you will be crushed.
    Yeah hes a lead, doubt you will know him. He covers South African producers based from Jo'burg.
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    (Original post by BrianGretzky99)
    I guess this begs the question, if you did not go to oxbridge and do 3 internships at Goldman what is the best strategy for getting your CV looked at? What would someone in HR think if they received a CV with a full scale DCF model on it haha. I guess without inside connections its tough to get to that interview stage otherwise.
    I'm wondering the same thing myself
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    What's the prospects of intern placements in Research for next summer? It looks like grad roles are thin on the ground... does that translate into interns as well?
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    (Original post by bazc350)
    What's the prospects of intern placements in Research for next summer? It looks like grad roles are thin on the ground... does that translate into interns as well?
    I doubt intern places have been hugely affected - banks know that they're going to have to rebuild soon, so it makes sense for them to take on plenty of interns in case, even if they choose to convert fewer in the end.
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    (Original post by loggins)
    I doubt intern places have been hugely affected - banks know that they're going to have to rebuild soon, so it makes sense for them to take on plenty of interns in case, even if they choose to convert fewer in the end.
    Thanks, hopefully you're right.
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    anyone willing to post a quick review of the kind of work they do in credit research (vs equity research)?
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    (Original post by Teenage Pirate)
    anyone willing to post a quick review of the kind of work they do in credit research (vs equity research)?
    Isnt it a bit obvious? equity research = You cover equity stocks, credit research = you cover fixed income securities such as high yield bond, investment grade debt, sovereign debt, etc.

    In credit research, you would specialize in specific sectors or looking at specific securities such as high yield bonds, sovereign debt (debt of countries), emerging market sovereign debt, etc.

    Equity research you would specialize in specific sectors or even countries (e.g. looking at equity strategy).
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    (Original post by PortfolioManager)
    Isnt it a bit obvious? equity research = You cover equity stocks, credit research = you cover fixed income securities such as high yield bond, investment grade debt, sovereign debt, etc.

    In credit research, you would specialize in specific sectors or looking at specific securities such as high yield bonds, sovereign debt (debt of countries), emerging market sovereign debt, etc.

    Equity research you would specialize in specific sectors or even countries (e.g. looking at equity strategy).
    so what, are you looking at companies'/countries' credit worthiness equity research style or are you looking at how interest rates or spreads will move or both or soemthing more?

    how do you analyze a company's credit worthiness is it similar to equity research or does it look more at ufndamentals?

    is the kind of work similar in terms of hours/travel/pay/pressure to er?
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    (Original post by Teenage Pirate)
    so what, are you looking at companies'/countries' credit worthiness equity research style or are you looking at how interest rates or spreads will move or both or soemthing more?

    how do you analyze a company's credit worthiness is it similar to equity research or does it look more at ufndamentals?

    is the kind of work similar in terms of hours/travel/pay/pressure to er?
    For credit research on companies, you are looking at the yield, S&P/Moody's ratings and the company's outlook and prospects. If its high yield you would be looking at the company's financials in particular its ability to pay its interest payments and principal (is there refinancing risk? etc.).

    Key parameters credit research look at is Leverage (Net debt/EBITDA), Free cash flow, EBITDA/net interest expense (which is interest cover), also EBITDA - capex/net interest expense (capex adjusted interest cover), and the same stuff equity researchers look at which is revenues, EBITDA margins, growth, etc.

    Credit researchers are more looking at cash flows (funds from operations, cash flow from operations, free cash flow) where as equity researchers tend to look at EPS/HEPS (Headline earnings per share which is EPS adjusted for non-recurring items).

    EPS --> Is the key which impacts shareholders, as earnings is attributable to the equity holders of the company. So Equity researchers concentrate on this, always thinking of earnings.

    Cash flow --> is what bond holders look at, is the company able to pay off its interest payment? Whats the likelihood that this High yield bond will default? Look at agency ratings, etc.

    Obviously both equity and credit researchers have overlapping areas of working (i.e. looking at the fundamentals of the company, outlook, market, leadership position and the dynamics of the market which they operate in).

    Not too sure about pay, but equity research is more 'glorified' than credit research. You get more spotlight in equity research.
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    (Original post by PortfolioManager)
    For credit research on companies, you are looking at the yield, S&P/Moody's ratings and the company's outlook and prospects. If its high yield you would be looking at the company's financials in particular its ability to pay its interest payments and principal (is there refinancing risk? etc.).

    Key parameters credit research look at is Leverage (Net debt/EBITDA), Free cash flow, EBITDA/net interest expense (which is interest cover), also EBITDA - capex/net interest expense (capex adjusted interest cover), and the same stuff equity researchers look at which is revenues, EBITDA margins, growth, etc.

    Credit researchers are more looking at cash flows (funds from operations, cash flow from operations, free cash flow) where as equity researchers tend to look at EPS/HEPS (Headline earnings per share which is EPS adjusted for non-recurring items).

    EPS --> Is the key which impacts shareholders, as earnings is attributable to the equity holders of the company. So Equity researchers concentrate on this, always thinking of earnings.

    Cash flow --> is what bond holders look at, is the company able to pay off its interest payment? Whats the likelihood that this High yield bond will default? Look at agency ratings, etc.

    Obviously both equity and credit researchers have overlapping areas of working (i.e. looking at the fundamentals of the company, outlook, market, leadership position and the dynamics of the market which they operate in).

    Not too sure about pay, but equity research is more 'glorified' than credit research. You get more spotlight in equity research.
    cheerios
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    Sorry for bumping this thread, but is anybody on this forum employed in ER or asset management? I have a document I'd like to include with my CV, which I think will add a lot of value to a job application, but I need feedback on whether you think my work is good for someone wanting to land a job in ER...

    I'd be more than happy to send the document via PM.

    Cheers.
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    (Original post by TOTB)
    Sorry for bumping this thread, but is anybody on this forum employed in ER or asset management? I have a document I'd like to include with my CV, which I think will add a lot of value to a job application, but I need feedback on whether you think my work is good for someone wanting to land a job in ER...

    I'd be more than happy to send the document via PM.

    Cheers.
    rboogie is
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    I am. Just to note, there are like 3/4 ER guys on here incl myself.
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    For some reason, I can't send anyone an attached file via PM? Is it possible?
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    No. Just write to them asking for an email address or upload somewhere etc. Nice and easy. Like the hair colour stuff that was big in the 60s or however many years ago.
 
 
 
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