2 middle office positions: need advice

Luchano

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Which beginning level position would you choose with regard to career opportunities, stability of work, compensation perspectives, CFA qualified experience, exit routes (all other things being equal):

The 1st position is a market risk analyst (middle office) within a large hedge fund. This position is to monitor emerging market funds across all asset classes.

Running risk sensitivity reports
Checking inputs at an instrument level to ensure reasonableness of results
Manually over riding or supplying any static data as required, referring to confirms/checking with traders as to what an underlying product is
Reconcile positions and products to ensure complete trade capture
Compare risk sensitivity reports on a weekly basis against changes in VaR and Risk Units
Prepare data for add hoc analysis
Prepare reports for larger aggregation reports
Perform risk limit monitoring for a small number of limits per fund
Provide backup for the risk manager when he is out of the office

The 2nd position is a credit risk analyst (middle office) within a large corporate bank.

The Credit Risk and Portfolio Management Department. Responsibilities comprise undertaking risk assessment analysis of various types of lending proposals, predominantly in the Corporate Finance arena, but also structured finance and securitizations. Work in conjunction with members of both the front and back office to produce appropriate obligor and transactional credit ratings. Credit assessment primarily involves combining financial statements analysis and modeled projections to obtain appropriate internal credit ratings, which then may be subject to quantitative and qualitative adjustment. Utilize external rating agency products in analysis. Perform analysis of Credit Investment products involving Asset Backed Securities including RMBS, CMBS and CDO products.
 
It's nearly impossible to have an opinion. It all has to do with where you want to be in the future. Maybe I'd go with the job where I feel I would be able to build up the most rapport with my future manager. On one hand you have "lending proposals" in the Corporate Finance area, keeping track of internal & external credit ratings & limits. On the other hand reconciliation of positions on instrument level and probably heavy data mining in large databases. My suggestion is you go with the job you like best.
 
well I want to be a fixed income portfolio manager, I think I need to understand credits for that, but at the same time I need to have timing and monitoring skills.
 
If you want to be a fixed income PM then I think it's obvious, take the credit job. I work in fixed income investment management and we have at least one PM who came up through a bank credit department. None that I know of that came up through market risk management, although I made my way here via credit risk management. I'm a long ways from a PM though.

Although actually I guess I'm not positive what middle office means in the context of a bank credit department. Maybe it just means you don't close the loan, but you do the due diligence, build the model, and rate the credit. If so, then I think it's the right choice. Just make sure you will be involved in the credit analysis part and you'll be building the right skills for fixed income.
 
Back
Top