Credit voices: Paola Biraschi

Paola is a seasoned financial analyst whose career spans both equity and credit research at investment banks including Lehman Brothers, Nomura, RBS.

Here, she shares her career story.

What inspired you to pursue a career in credit?

“I started my career in equity research, analyzing banks. The opportunity to change direction into credit arose by chance, when my employer divested from the equity business globally. At that point, I was offered the responsibility of running the financial sector credit strategy, working closely with the trading desk. I was inspired by the fact that the regulatory environment for financials was evolving very rapidly and becoming more complex; the understanding of credit risks was becoming complementary to the equity analysis, and vice versa, and I loved the opportunity of becoming an expert on both asset classes.”

Career highlights

“I have been focusing on financials research throughout my career, on the equity side first, and then credit,” Paola begins. “With the exception of CreditSights, my employers have always been investment banks. Here, my perspective as a banks analyst was often sought by management, providing me with valuable exposure to their strategy-making process, which I greatly enjoyed,” she adds.

“When I started my career in equity research, one of my first tasks involved working on the IPO of a reasonably large bank,” Paola recalls. Remarkably, she has maintained coverage of that same bank throughout her career. Transitioning into credit allowed her to leverage her deep knowledge of the institution, which became invaluable as the bank’s fundamentals began deteriorating.

“I remember presenting on that bank to a very large private equity investor in New York, who was considering building a substantial position on the name across asset classes,” she recounts. “It was one of the most engaging and high-profile interactions of my career.”

Paola describes her time as Head of Financials Credit Strategy at RBS as a standout period in her career. “It was a very steep learning curve for me, but I had a great team, and I was also inspired by the management vision for the department.”

“My main responsibility was providing credit strategy coverage of companies and sectors within the European financial institution bond market,” she says. Her work was tightly integrated with the trading desk, focusing on building the firm’s client franchise and generating P&L.

“I have always enjoyed the analytical aspect of my work,” Paola says. She equally values the collaborative aspects of her role. “I enjoy engaging in conversations with investors—presenting my views to them or addressing their investment concerns—as well as with the management of the companies that I covered.” These dialogues, she notes, are usually mutually enriching. “Often, the conversations were, and are, a two-way flow that is hopefully value added for both parties.”

Paola continues to thrive on identifying and discussing investment opportunities in banks’ credit. “In my current role, I am still enjoying working with the team and predicting how markets will evolve,” she says.

Advice for aspiring credit professionals

“If you have an analytical mind, are curious, and like working in teams, then a career in credit may be for you!” Paola enthuses. “Solid analytical and quantitative skills, and a great attention to details, are the most important characteristics to have. Interpersonal skills and enjoying working in a team are also both very important in my view.”

Final reflections

Paola’s journey in the financial sector highlights her adaptability, analytical expertise, and passion for collaboration. Reflecting on her career, she emphasizes the importance of staying curious, embracing challenges, and continuously learning. Her ability to bridge equity and credit analysis has contributed to shaping her success. Paola’s story serves as a testament to the rewarding opportunities that come with perseverance and a curiosity for the intricacies of the financial world.