I recently asked my network which skill is currently the most underrated for a buy-side credit analyst. The options included: Conviction in defending a view, AI fluency, Sector coverage breadth and Portfolio position sizing.
Whilst it was an anonymised vote, it was mainly my broader network of credit analysts and portfolio managers who contributed to what was a clearly weighted outcome, with "Conviction: Defending a view" drawing a noticeably higher share of the votes than the other options.
Ultimately, this is indicative of the fact that those who are regularly having to produce and defend ideas are aware that this is perhaps what can set people apart, even if it is not always widely noted. Many analysts are strong on the fundamentals but would need that real conviction in their ideas to stand out.
How an analyst will hold a view on a name and defend it in front of a PM, an investment committee or a sceptical desk is harder to screen for in first interviews, and is usually addressed at the case study and presentation stages. However, here at Laz Partners, we are increasingly seeing it coming up in early-stage discussions instead.
The analysts who stand out are defending a live view and pushing back where they believe they are correct, rather than just running through an overview of their current sector coverage and recent trade ideas. Those who are technically strong but reluctant to fully commit to a position are not always as successful at these stages, even when their underlying analysis is arguably strong.
Overall, for analysts who can show this conviction skillset, it means making the move from supporting the PM to directly influencing the book, and it tends to come about 3-5 years in.
So if you are weighing up your next move, the fundamentals are of course needed, but it is your ability to hold and defend a view that sets you apart. Given it has been identified by my network as an underrated skill, it is worth considering being deliberate about how you are currently defending your views and the conviction you have in your ideas, as this is something that can really accelerate your capabilities and successes as an analyst.
