Intern Interview - Distressed Debt and-or High Yield
Length of Process
After the phone interview, within a wee I was emailed again by HR asking me to come in for a superday.
The super day itself involved me going to NY to their offices to do 2 interviews.
After this, I was contacted about a super day in NYC, which I went for. The super day consisted of 2 interviews, though according to people who also got the super day, the number of interviews you had was based on availability of Analysts/PMs and not really standardized.
My first interviewer was the same person as the phone interviewer, but this time he didn't ask me at all about the pitch or my story. Instead, he asked me a few fit questions, but nothing to prep for since these were just him asking about the interests I put on my resume. After this, he grilled me a bit on technicals, but nothing in M&I, and the technicals were not that complicated, but were definitely moire complicated than M&I stuff. Specifically, he asked me how PIK interest flows through the 3 statements, asked me to calculate the yield of a bond that matures in 2 years, and he also asked me this question:
An OpCo is levered at 6x EBITDA, the HoldCo is levered at 2x EBITDA, EBITDA is 100mm, and the whole company is worth 7x EBITDA. What does HoldCo debt trade at?
After this, he asked me if I have any questions for him and then we talked a bit more about my interests.
In between my two interviews, I waited for an hour in the conference room since the second interviewer had a phone call that ran over time.
My second interviewer asked me for my story, and asked me to pitch to him. He grilled me super hard on what I thought the stock could rise to (since I pitched a short) and grilled me on risk-reward payoff and how shorts should have asymmetric risk-reward profiles. This lasted about 20 minutes, after which we talked a little bit about my college (he happened to be an alum), then he asked me if I have any questions, and then walked me out of the office.