Credit HF Questions - Curious Student
I am wondering two things.
1. Distressed/ss/flexible mandate credit strategies are very cool (cross cap stack). For those in one of these seats, what would you be doing as a student, and where would you go out of school (straight to buyside, rx, etc.)?
2. What is the career "sharpe" of credit vs pub. equity. In other words, how is the comp compared to job security vs. equity strategies.
Thank you
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Best to do restructuring banking or leveraged finance
Many special sits / credit HF is effectively value investing with credit structuring. Understanding business / industry dynamics, and fundamental financial analysis (valuation, historical analysis, cash flow modelling) should be prioritised.
Following this, understanding basic loan structures (tenor, makewhole, interest - pik / cash, equity linked - warrants, royalty, exit fee, covenants, seniority), enforcement / bankruptcy regime and healthy dose of skepticism (downside oriented view) fits for a credit investor
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