leveraged finance interview - what to prep

Hi All,

I'm an undergrad and have a lev fin interview this week and was wondering what the key topics and technicals i should prepare for are? are there any specific things related to this field you believe are common to get asked about in an interview?

Thanks

 

For sure know the basics of bonds, yield curves, pricing and interest drivers, and have an opinion on both the fixed income markets and equities markets. Know the characteristics and structure of debt (senior, junior, mezz, equity). It's less likely, but they might ask you about debt schedules/ waterfalls so you might want to review that as well.

Know the difference between investment grade bonds and high yield bonds. The ultimate goal of LevFin is to provide clients with an optimal capital structure to help the client achieve their goals in the best manner. Whether a merger, acquisition, or capital injection. Good luck with the interview!

 
California t:
Hi all, I'm an undergrad and have a lev fin interview this week and was wondering what the key topics and technicals i should prepare for are? are there any specific things related to this field you believe are common to get asked about in an interview? thanks

Check out A Pragmatist's Guide to Leveraged Finance: Credit Analysis for Bonds and Bank Debt. Good luck. If you can't get hold of the book there is a summary somewhere online on scrib if i remember.

 
Best Response

The most important aspect will be credit analysis and how to assess a company's debt capacity, knowledge of the yield curve / markets etc is less important as long as you have a sensible view on the market. Chapters 4 and 5 in Rosenbaum & Pearl are great primers on Lev Fin and LBO modelling. Read these 2 chapters thoroughly (PDF available of the book online) and you'll be well prepared. Reading S&P's primer on leveraged loans (http://www.leveragedloan.com/primer/) will also be a worthwhile exercise. People often overlook the loan element of the market when preparing for interviews. If you're interviewing for a MM firm, read up on BDCs / direct lending funds, as they are continuing to grow in stature and compete with IBs for MM deals.

 

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