The paper compares earnings forecasts of analysts affiliated with debt underwriters to the forecasts of analysts affiliated with equity underwriters. We demonstrate that while analysts affiliated with equity underwriters produce more overly optimistic and inaccurate forecasts, analysts affiliated with debt underwriter affiliation often issue very precise, slightly pessimistic forecasts that can be marginally beaten by management. With increasing default risk, however, the behavior of debt-underwriter analysts increasingly resembles the behavior of equity-underwriter analysts. These results shed new light on the different conflicts of interest that influence analysts reporting behavior.