Advice on becoming a strong credit investor
Hi all,
Wanted to find out if anyone has access to free resources that I can read to become a better credit investor?
Areas that’s I’d like to improve:
-
legal knowledge - what can I read to learn about different type of baskets and what I need to be aware of as a credit investor (not expecting to be an expert but would like to have a good base level of knowledge)
-
how to know if senior or junior part of the cap structure is best when investing in a particular credit
please assume I have a base line of credit knowledge already,
thanks in advance!
Bump?
For the legal part, if you have access to Xtract or similar resources, read their primers. Legal docs are full of big words but the key concepts are quite simple. 9fin also has a podcast on which they often talk legals.
I will come back to you on the rest
didn't have a chance to look at resources, but for the quetion around which tranche do you want to be in, the main considerations are debt as a % of EV and cash generated to cover repayments/delever. Pricing will (mostly) drive the rest
Wow - this is great - thanks for sending on Xtract
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If you’re talking about PC and actually being involved in documentation / drafting of credit agreements with your counsel, nothing really prepares you besides reading precedent docs and being involved in the process (i.e. giving feedback to lawyers on each turn of the doc). There’s no way around it, it just takes time.
My current role doesn’t really involve that as we are more ‘terms takers’ - as such it’s difficult to know what’s aggressive and what’s not
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