Lev Fin Cap Mkts Lateral Interview

For a Leveraged Finance Capital Markets lateral interview, based on the most helpful WSO content, here’s what you should focus on:

1. 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.

2. 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.

3. 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.

4. 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.

5. Debt Schedules/Waterfalls: While less common, you might be asked about debt schedules or waterfalls, so it’s worth reviewing.

6. Case Studies: Be prepared for case studies that may involve structuring new debt financing or analyzing a company’s capital structure.

7. 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.

8. 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