LevFin Interviews
Hi guys, I am targeting LevFin, how should I prepare for the interviews? What kind of questions technical questions should I expect?
Background - South Asian, Currently pursuing MBA, before MBA spent few years in financial advisory and then sometime in financial restructuring.
Ahoy there! Diving into the world of Leveraged Finance (LevFin) interviews, are we? With your rich background in financial advisory and restructuring, you're already on a solid footing. Let's gear up to make your LevFin interview prep as smooth as a banana milkshake!
Given your quest, here's a treasure map to navigate through the LevFin interview jungle:
Understand the Basics: Start with the fundamentals of bonds, yield curves, pricing, and interest drivers. It's crucial to have a firm grip on these concepts as they form the backbone of LevFin.
Market Opinions: Be ready to discuss your views on both the fixed income and equities markets. Your experience will definitely add depth to your opinions, so don't shy away from showcasing it.
Debt Instruments: Know the characteristics and structure of various debt instruments like senior, junior, mezzanine, and equity. Each has its unique place in LevFin, and your understanding of them will be tested.
Credit Analysis: This is the heart of LevFin. Be prepared to assess a company's debt capacity. Your financial advisory and restructuring background will be a gold mine here. Dive deep into how to evaluate a company's ability to take on and service debt.
Investment Grade vs. High Yield Bonds: Understand the difference between these two types of bonds. This distinction is critical in LevFin as it affects the strategies employed for different clients.
Capital Structure Optimization: The ultimate goal in LevFin is to provide clients with an optimal capital structure. Be ready to discuss how you would approach helping a client achieve their goals, whether through mergers, acquisitions, or capital injections.
Technical Readings: To sharpen your sword, chapters 4 and 5 in Rosenbaum & Pearl are excellent primers on LevFin and LBO modelling. Also, S&P's primer on leveraged loans is a worthwhile read. Don't overlook the loan element of the market.
MM Firm Prep: If you're eyeing a middle market (MM) firm, brush up on Business Development Companies (BDCs) and direct lending funds. They're significant players in MM deals.
Pragmatist's Guide: Given your ambition, the Pragmatist Guide to Leveraged Finance is a must-read. It's considered the Bible for LevFin enthusiasts.
Practical Experience: Your experience in financial restructuring will be invaluable. Be prepared to discuss real-world scenarios where you've applied your knowledge to solve complex financial problems.
Remember, your South Asian background and MBA pursuit add unique perspectives to your candidacy. Leverage (pun intended) your diverse experiences to stand out.
Good luck, future LevFin star! Keep swinging through the finance jungle with confidence.
Sources: leveraged finance interview - what to prep, The 24 Interview Lessons I Learned on the Way to Getting My First Full Time Job, LevFin preparation for virtual internship
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