Lev Fin Cap Mkts Lateral Interview
What should I prep for a Leveraged Finance Capital Markets lateral interview? (Only 1-2 years post grad)
Trending Content - Investment Banking Forum
| +181 | Downfall of Qatalyst | 36 | 1d |
| +166 | UBS IB 26Q2 a Disaster! Advisory Revenue Down 23%, Capital MarketsDown 5% | 22 | 1d |
| +94 | Lincoln International Return Offers | 41 | 11h |
| +59 | Wolf of Wall Street vs. Reality: Anyone else feel scammed by the movies? | 19 | 3d |
| +49 | so confused about 28 SA timeline | 27 | 4d |
| +33 | [WSO MODS] Please Delete This BS Host Books Spam! | 2 | 3d |
| +33 | Fired during interview | 5 | 13h |
| +27 | UBS Americas IB: The Kids’ Table of Wall Street | 2 | 24m |
| +26 | London IB BB is a challenge | 27 | 3h |
| +22 | Associate 3 in ECM - Worth Moving to Broader Advisory? | 8 | 14h |
Career Resources
For a Leveraged Finance Capital Markets lateral interview, based on the most helpful WSO content, here’s what you should focus on:
Credit Analysis: Be prepared to assess a company's debt capacity and understand the implications for lenders. Familiarity with credit agreements and documentation is key.
Debt Structures: Know the characteristics and structure of debt, including senior, junior, mezzanine, and equity. Understand the difference between investment-grade and high-yield bonds.
Yield Curve and Market Views: Have a solid understanding of bonds, yield curves, pricing, and interest rate drivers. Be ready to share your opinion on both fixed income and equity markets.
Technical Skills: Review leveraged loan market updates (e.g., LCDcomps.com, LevFin Insights) and get comfortable with loan products like Revolvers, Term Loan A/B, and Unitranche. Chapters 4 and 5 of Rosenbaum & Pearl are excellent primers on LevFin and LBO modeling.
Debt Schedules/Waterfalls: While less common, you might be asked about debt schedules or waterfalls, so it’s worth reviewing.
Case Studies: Be prepared for case studies that may involve structuring new debt financing or analyzing a company’s capital structure.
Market Knowledge: If targeting a middle-market firm, read up on BDCs and direct lending funds, as they are increasingly competing with IBs for MM deals.
Behavioral Questions: Be ready to discuss your deal experience, your role in those deals, and why you’re looking to lateral. Nail down your story and motivations.
For additional resources, consider reading S&P's primer on leveraged loans (url: http://www.leveragedloan.com/primer/) and practicing with WSO’s prep materials. Good luck!
Sources: leveraged finance interview - what to prep, Lateraling Guide for Investment Banking, Q&A: Currently at a Credit Hedge Fund, Key Interview Takeaways - 2nd Year Analyst Perspective, Investment Analyst - Prudential Private Capital (PPC) FT 2021
Sequi non similique quasi exercitationem sint sint. Fuga voluptas sapiente et repudiandae alias voluptatem. Aut exercitationem est reiciendis et aut facilis. Eveniet similique natus illum perferendis.
Reprehenderit sit quia cumque quaerat eum. Odio numquam nulla magnam a quo. In autem est repellat numquam tenetur. Illum alias explicabo similique qui. Ratione itaque corporis sit similique voluptas eum optio. Laboriosam dolorum quis laborum quia explicabo consequatur iure.
Molestiae ab aut corrupti. Quia voluptate et ut nisi molestias voluptate est. Fugit odio ut quaerat officia esse nesciunt repellat.
Dicta voluptatum rem voluptatem. Exercitationem quia cupiditate aliquid magnam eius ut explicabo. Esse repellendus facilis quo est molestiae voluptas quo. Id similique quis molestias est est laboriosam eligendi.
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...