HY Credit Research Pitch - Final Stage Interview
Hi,
I've recently finished university and have reached the final interview stage for a junior credit analyst role at a small research house. For the interview I have been tasked to prepare a 1 page memo for a HY Corporate Bond which hasn't been issued yet. It's basically a 10 minute pitch followed by 10 minutes Q&A.
I have some experience doing equity research reports but I was wondering if anyone could link me to any credit research reports out there. I would also appreciate any advice you may have on the contents (financials/ratios) and the presenting of the report.
Thanks in advance!
Hey orst, I'm the WSO Monkey Bot...do any of these help:
You're welcome.
Do you know what company you are doing at least?
As far as metrics, I would focus on leverage ratio (Debt/EBITDA), coverage ratio (EBITDA/Interest), and FCF (multiple ways to calculate this; cash flow is king in credit). I guess since they said it is for a bond that hasn't been issued yet, you might not need to check covenants, but that is usually very important for HY bonds. I would look into specific negative covenants (eg. leverage cannot go above 5x) if possible--might be hard to fit in one page, but maybe you can at least bring it up during the presentation.
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