I have an interview coming up for an internship position with a hedge fund focused on distressed debt. I have been through various banking interviews and have experience with the behavioral question but am unsure what type of technical question to expect from this interview. would someone who has interviewed with a credit fund be able to provide some idea of the questions I can expect for an internship position.
thanks!
| +23 | % of pods making 9 figures consistently? | 28 | 3h |
| +9 | Fastest Way to MMHF? | 3 | 39m |
| +6 | Credit HF Guys: How much do you think abt "value" | 7 | 1d |
| +6 | Bad PM | 1 | 15h |
| +4 | Amakor Capital - Who are these guys? | 2 | 3d |
| +3 | culture at citadel macro | 1 | 5d |
| +3 | 4 YOE in ER & 30 years old | 5 | 23h |
| +2 | 2+1 -> Start-up -> Publics? | 1 | 6d |
| +2 | Walleye SA 2027 | 3 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
I'm assuming that this is an internship for current undergrads, so they wouldn't expect you to have professional restructuring or full-time banking experience.
Here are some (certainly not all) key concepts for distressed debt to know, besides typical valuation and finance items: Know the concept of a fulcrum security Know what debt covenants are and how they work Understand capital structure seniority Understand generally how bankruptcy and restructuring works (in court vs out of court, liquidation versus reorg, etc) Know how credit default swaps work If you have time, read (or at least browse) Stephen Moyer's Distressed Debt Investing
Thanks for the response, very helpful. The job was a posting through schools career site and it actually mentioned it would take current mba students or undergrads so i'm not sure what their expectations of my knowledge would be. I am comfortable with the standard banking valuation techniques (dcf, precedent transactions, and comps) but do you think there are any other debt valuation techniques I should be comfortable with?
Liquidation value (Basically what can the assets be sold for in a stress scenario)
Kenny powers had some great suggestions. I would also know a little bit about the CLO market as well.
Ut labore delectus ea accusantium. Eos natus ut veniam culpa molestiae. Adipisci amet temporibus quae et placeat optio. Doloremque cupiditate dolores sapiente quia. Exercitationem assumenda ea culpa aut.
Rem quo voluptatem error minima ut. Autem et nemo magni voluptas. Fugiat quibusdam molestiae officiis. Itaque porro delectus deleniti minima animi aperiam pariatur sapiente.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...