Distressed Debt / Opportunistic Credit Interview
Hey guys, I have a distressed debt / opportunistic credit interview coming up soon. Any suggestions on how to prep would be greatly appreciated! Don't have any RX background so a bit stumped.
Based on the most helpful WSO content, here’s how you can prepare for a distressed debt/opportunistic credit interview:
Understand the Basics of Debt Structures:
Review Key Restructuring Concepts:
Dive into Technical Skills:
Study Valuation and Bankruptcy Mechanics:
Focus on Credit Analysis:
Understand Market Indicators:
Prepare for Case Studies:
Practice Behavioral Questions:
Good luck with your interview! For more detailed insights, check out resources like Stephen Moyer’s book and the Distressed Debt Investing blog.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/how-to-prepare-for-restructuring-technical-questions?customgpt=1, How to Prepare for Restructuring Technical Questions, Private Credit Interview Advice, leveraged finance interview - what to prep
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It depends on who it is with/the type of shop, the level of seniority, etc. I'd have basic fit questions down (why distressed, why shop, etc.), maybe have a name you follow and how you think about it, what's your research process, etc. For technicals, I'd expect just basic accounting/LBO/RX questions (understanding basic liquidation preference, structural seniority/subordination, creation multiples, etc.) at first.
this is for an associate position at a MF. Would you have any specific resources?
distressed debt by moyer is a pretty good book if you can grab a pdf somewhere. No specific RX question bank though. I interviewed for a similar position last week and was asked technicals along the lines of what I described above.. pretty basic
Congrats on landing the interview! For distressed debt and opportunistic credit, focus on understanding the key strategies and structures, like loan-to-own, equity kickers, and mezzanine financing. Even without direct RX experience, make sure you’re familiar with the bankruptcy process, how distressed companies are valued, and how you’d evaluate a potential recovery or restructuring. Brush up on recent distressed debt deals and market trends—things like interest rates or how economic shifts impact credit markets. Also, be prepared to talk about how you’d analyze a distressed company’s financials, such as looking at liquidity, covenants, and recovery potential. Just stay confident, and show your ability to think critically about these situations. Good luck!
thanks! do you mind if I PM?
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