About
What is CREDIT
CREDIT is a student-run investment organization at Virginia Tech that manages a $2 million portfolio of 144A corporate bonds on behalf of the Virginia Tech Foundation. The group is structured into four teams based on real-world sectors, each responsible for two investment pitches per semester. Teams present every four weeks, with each pitch supported by detailed financial models and in-depth qualitative analysis. Students also deliver weekly market updates and participate in loan/fixed income education.
History
In 2017, the Virginia Tech Finance Department began to feel a push for more experimental learning for Finance students from the Finance Advisory Board. Other organizations were helping students gain experience in equities and fixed income, but there was little opportunity to learn how to lend money. Dr. George Morgan, a Virginia Tech
Finance Professor and BASIS Advisor, saw the opportunity to create a one-of-a-kind capstone experience to reignite interest in banking. He enlisted students to brainstorm ideas for a new experience. In preparation to revamp the risk management and banking option within Finance, Dr. Morgan enlisted the help of John Asbury, CEO of Atlantic Union Bank, and Mike Clarke, former CEO of Access National Bank before its merger with AUB. Both are Virginia Tech Finance grads and offer invaluable expertise and experience to help create a hands-on experience between Atlantic Union Bank and Virginia Tech students.
In 2019, these students had the opportunity to pitch the idea of Credit Corps to the Finance Advisory Board in New York. These students outlined how the capstone would allow them to work as commercial loan officers on deal teams to review financial statements, interview management at borrowing companies, and identify risks. The Virginia Tech Foundation graciously committed $2 million over four years to establish CREDIT. This has allowed students to work with Atlantic Union Bank and First Bank and Trust to invest real money in sophisticated assets. In 2020, the organization shifted its asset focus to trading Rule 144A corporate bonds, allowing students to gain hands-on experience in institutional fixed-income markets. U.S. Securities and Exchange Commission Rule 144A is a provision that enables the private resale of securities to large institutional investors without requiring full public registration. These securities are typically issued by corporations seeking faster, more flexible access to capital markets and are most traded among Qualified Institutional Buyers (QIBs).
Through its partnership with the Virginia Tech Foundation, CREDIT operates as a Qualified Institutional Buyer, which allows the fund to legally access and trade in the 144A market. QIB status is reserved for institutions that manage at least $100 million in securities, and it is the same classification used by major asset managers, insurance companies, and banks. This structure gives students direct exposure to the segment of the bond market where much of Wall Street’s corporate credit activity takes place.
By investing in 144A bonds, students analyze companies from a lender perspective—focusing downside protection, credit risk, cash flow durability, covenant structures, and recovery scenarios rather than equity upside. This mirrors the work of commercial lenders, private credit funds, and leveraged finance teams at investment banks. As a result, CREDIT provides practical experience in institutional credit underwriting, portfolio construction, and secondary bond market trading, all while managing real capital on behalf of the Foundation.