Credit Research 1999: Telling the wheat from the chaff

Credit Research: Moving down the credit curve
Credit Research: Methodology

Have you heard the one about the million-dollar credit analyst? Apocryphal tales linking those in the once lowly field of credit research with heavyweight salaries were flying about the market in 1998. European economic and monetary union is the catalyst for the buying of credit by many investors previously used to interest-rate and foreign-exchange risk. As European investors warm to credit, and particularly venture into the dimly lit nether world of high-yield debt, credit researchers are in demand more than ever to sort the winning deals from those likely to default.

Last year skilled credit analysts were in short supply, their market price was rocketing and poaching was rife. Those with good reputations were in demand and moved rapidly from house to house. Greater rewards brought greater pressures: analysts were expected to cover a wider market and play more of...