Jan 08, 2026
2 Comments
 

Based on the most helpful WSO content, Oaktree's modeling tests, including the 3-hour model test, are generally known for their focus on building financial models under tight time constraints. Historically, these tests have included tasks like creating a 3-statement model and an LBO model, often requiring candidates to make logical assumptions due to limited information provided.

If this test is specifically labeled as "HY" (High Yield), it could indicate a focus on high-yield bond analysis or capital structure considerations. This might involve tasks such as:

  1. Analyzing High-Yield Bonds: Evaluating bond metrics like yield-to-maturity, credit spreads, and risk factors.
  2. Capital Structure Analysis: Assessing leverage, interest coverage ratios, and the impact of debt on the company's financial health.
  3. Pitch Component: If there's a pitch element, you might be asked to recommend a high-yield bond investment or propose a restructuring strategy.

While the exact format may vary, Oaktree's tests are known for being challenging and requiring a solid understanding of financial modeling, logical assumptions, and concise presentation of results. If you're preparing, brushing up on high-yield bond metrics, capital structure modeling, and LBO frameworks would be a smart move.

Sources: 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, Oaktree Modeling Test /Case Study, Two Bonds w/ Different Maturities but Same Price / Face. Which has higher yield?, https://www.wallstreetoasis.com/forum/real-estate/thoughts-on-bentallgreenoak-need-update?customgpt=1

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