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Anurag's avatar

Could you please elaborate on the Business Analyst vs. Security Analyst dimension?

Gary Mishuris, CFA's avatar

Happy to. Business Analyst focuses on the company - the business, industry structure, management, etc. Security Analyst focuses on the terms of the security - the price or yield, covenants (for debt), etc. So at the extreme, a Security Analyst might say "this is bond offers good yield in the current environment and is structured to offer investors good protection" while a Business Analyst might point out "this enterprise is highly cyclical and lacks any competitive advantages and might therefore run into trouble."