THIS IS THE sort of environment that credit analysts should thrive in. Volatility, wide spreads and the potential for differentiation among names has elevated the role of a research analyst as clients look for direction in a market where good credits can turn bad overnight. Although 12 months ago many in the research industry were predicting a rise in the importance of credit research as the cycle turned, the nature of that downturn has surprised many. As the liquidity crisis has propagated some peculiar dynamics, such as unsecured debt outperforming secured debt, the process of picking winners has become extremely difficult. More than at any time in the past few years, research analysts are under the spotlight. As one research head puts it: "If you’re not enjoying this period in time, then you’re in the wrong job."