Distressed Debt In-Person Case Study Advice

I have an in-person case study interview at a distressed debt hedge fund coming up. This is the fourth round of interviews. I don't have much experience in distressed debt and am coming from a traditional IB background. I have been told I am going to be given a computer, a new HY issuance, and 3 hours to come up with investment thesis and then to present to the team on the spot.

Does anyone have any advice, guide, or anything else that may be helpful for someone like myself (with limited debt experience) going into this type of interview?

Any help, insight, or advice would be much appreciated.

 

Would focus on downside protection, try to put some thought into what can really go wrong with the business. Often people will just take their base case and cut by X% but that's not very thoughtful. Would think about leverage/LTV through your tranche and the CF yield you're getting. Pull some credit comps in the space and can compare those metrics to see how well you're getting compensated. They might ask you to look at one particular bond but have some views on other pieces of cap stack as well. And you don't just need to say buy/sell. Can say I'd be a buyer at X price, etc.

 
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