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Interviewed for a credit SA role previously. Obviously, know your behavioral's, the level of technicality that your interviewers will dive into really depends on the group. Here's what I prepared for:

  • How would you assess if a company will pay you back when you lend to them ? How would you assess if a company will pay you back when you lend to them?
    • ​​​​​​​“Five C’s” – character, capacity, collateral, capital, and conditions (Google it)
  • What’s happening in credit markets? 
    • ​​​​​​​My analysis was that because Fed is keeping interest rates low till 2023, more investors would flock to the private credit market in order to attract higher yields. Obviously, your analysis is gonna be different, so feel free to add your own points. 
  • Ratios to measure leverage
  • Know different types of debt & how they fit into a capital structure
    • Eg: Secured, Unsecured, Revolving, Mezzanine, Mortgage, First-lein, Second-lein
  • Underwriting process
    • This will vary varying on what you are underwriting (mortgage v non-mortgage etc.), but have a general idea of what the process is like
  • I would also be aware of general market news (Eg: Know where the Dow, S&P 500, LIBOR, 2 yr & 10 yr T-bills are at on day of interview; Also research general news about credit markets a day or two before your interview)

Obviously, I'm no expert on this matter, so if anyone else has recommendations, feel free to chime in​​​​​​​

 

Regarding credit market commentary, I think one could also add that we may expect improving credit quality in certain sectors as populations get vaccinated and economic activity picks up. 

 

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