Origination and Structuring Interview Help

Based on the most helpful WSO content, here are some insights and preparation tips for your interview for a liquid and capital markets analyst role focused on origination and structuring:

1. Understanding the Role:

   • Origination and Structuring: This role involves creating and pricing financial structures, often related to asset-based financing solutions. It is indeed similar to structured finance.
   • Asset-Based Financing: This typically involves providing loans secured by assets, such as inventory, accounts receivable, or other collateral.

2. Key Areas to Focus On:

   • Modeling Skills: Be prepared to build and analyze financial models. This includes understanding how to price different financial structures.
   • Credit Analysis: Assessing a company's debt capacity and understanding the yield curve are crucial. This involves evaluating the creditworthiness of potential borrowers and the risks associated with lending.
   • Debt Structures: Familiarize yourself with different types of debt (senior, junior, mezzanine, equity) and their characteristics. Know the difference between investment-grade bonds and high-yield bonds.
   • Market Knowledge: Have an opinion on both the fixed income and equities markets. Understand the basics of bonds, yield curves, pricing, and interest drivers.

3. Preparation Tips:

   • Review Debt Schedules and Waterfalls: Although less likely, you might be asked about these, so it's good to review them.
   • Understand Capital Structures: The ultimate goal in leveraged finance is to provide clients with an optimal capital structure to achieve their goals, whether it's a merger, acquisition, or capital injection.
   • Credit Documentation Skills: These skills are transferable and important for the role. Be familiar with the process of underwriting a loan, from receiving an inbound opportunity to negotiating term sheets and commitment papers.

4. Additional Insights:

   • Exit Opportunities: Roles in leveraged finance and structured finance often have good exit opportunities into direct lending, CLO/high yield funds, and other areas within finance.
   • Interview Focus: Interviews for credit roles tend to be less technical and more focused on fundamentals compared to equity roles. Be prepared to discuss your deal experience and where you would invest in the capital structure of a business.

Good luck with your interview this Friday!

Sources: leveraged finance interview - what to prep, https://www.wallstreetoasis.com/forum/investment-banking/how-to-prepare-for-restructuring-technical-questions?customgpt=1, Debt and Structured Finance Brokerage Exit Opps, Leveraged Finance – 2017 Update, Private Credit Interview Advice