UBS Leveraged Finance Career Opportunities and Job Descriptions

If you're interested in a career in UBS Leveraged Finance, you'll be working with a team that provides financing solutions to companies and private equity firms.

UBS Leveraged Finance is a global business, with teams based in key financial centers around the world.

You'll have the opportunity to work on a wide range of transactions, from leveraged loans to high-yield bonds.

In this section, we'll take a closer look at the career opportunities and job descriptions available in UBS Leveraged Finance.

You'll have more options in Leveraged Finance than in ECM or DCM, but be prepared to put in the extra work.

In Leveraged Finance groups, roles can vary widely, ranging from markets-based to modeling and deal-intensive.

With the skills you gain, particularly in reading and understanding loan documentation, you'll be well-prepared for deal discussions in interviews.

Here are some key takeaways to consider:

In Leveraged Finance, you'll be providing strategic advice to companies on raising debt, similar to what you do in Debt Capital Markets (DCM). However, the key difference lies in the type of debt issuances and clients you'll be working with.

Leveraged Finance focuses on below-investment-grade issuances, which are often used to fund control acquisitions, leveraged buyouts, and other transactions. These companies tend to be riskier than blue-chip companies, with less consistent operating results, higher leverage, and a higher chance of default.

Below-investment-grade debt issuances must offer higher yields than those of investment-grade companies. This is because of the increased risk associated with these companies.

Most of your clients in Leveraged Finance will be companies or private equity firms, rather than sovereigns, agencies, or supra-nationals. This is due to the high-yield nature of the debt issuances.

Here are some common uses of debt for Leveraged Finance clients:

In Leveraged Finance, you'll have more options for credit-related exit opportunities compared to ECM or DCM, but be prepared to work a lot more.

You'll gain useful skills, particularly in reading and understanding loan documentation, and work on major transactions that are great for deal discussions in interviews.

Leveraged Finance groups vary widely, with some banks treating it as a markets-based role and others focusing on modeling and deal-intensive work.

It's not as straightforward a path to private equity exits as some people think, and you'd have a similar chance of getting into PE from a solid M&A or industry group.

Here are some key aspects of a Leveraged Finance analyst role:

Maximizing your compensation in Leveraged Finance requires understanding the pay structure and potential risks.

The pay ceiling for Managing Directors and other senior bankers in Leveraged Finance is a bit higher than in groups like ECM or DCM, reaching the low millions USD.

To reach this level, you'll need to have a strong track record of performance and be willing to put in the long hours that come with this role.

The long hours in Leveraged Finance can be intense, with many late nights and last-minute requests from clients, particularly private equity firms.

These firms expect their bankers to work long hours, just like they do, so be prepared to put in the extra effort.

While some large banks may offer slightly better hours, the pay and career opportunities can be worth the sacrifice.

UBS has hired Shaun Barlow as head of euro leveraged finance trading and research, a significant move to strengthen its team.

Shaun Barlow comes from a strong background, having previously worked for Nomura, JPMorgan, and Goldman Sachs. He joined UBS from Seaport Global, a private capital markets group.

UBS's hiring of Barlow is a strategic move, especially considering Credit Suisse's restructuring efforts. Credit Suisse is cutting various credit traders, including female MDs like Amy Emanuel and Adrienne Lucier in investment grade sales.

This move highlights the importance of building a strong team, especially in a competitive industry like finance.