Want to lateral internally to Debt Advisory - Advice?

Based on the highest ranked content on WSO, here's your roadmap for making that internal lateral move to Debt Advisory:

The most critical factor is having a strong network and sponsor. As one successful lateral candidate put it: "These staffers get so many applications, you need to have some sort of sponsor to get you through the door."

Action steps: - Identify key MDs/VPs in the Debt Advisory team through internal directories or events - Leverage the fitness center, company events, or cross-team projects to build relationships naturally - Find someone willing to be your internal champion - this is absolutely crucial

For Debt Advisory interviews, you'll need to master:

Core Technical Skills: - Capital structure analysis and cap table construction - Credit analysis and debt capacity assessment - Yield curves, bond pricing, and interest rate drivers - Debt characteristics: senior vs junior vs mezz vs equity structures - Debt schedules and waterfall mechanics - Investment grade vs high yield bond differences - Liquidity rollforward analysis (projecting cash flows to identify potential liquidity events)

Advanced Areas: - Debt modeling: cash interest, PIK, accrued interest, margin ratchets, repayment schedules, cash sweeps - Understanding of restructuring mechanics if the group does distressed work - Fixed-charge coverage and debt service coverage ratios

Before the interview: - Research the team's recent deals and mandates - Prepare to discuss macro factors affecting debt markets - Have opinions on both fixed income and equity markets - Understand how debt advisory fits into optimal capital structure decisions

During the process: - Emphasize your commitment to the seat - mention you won't be eyeing buyside recruiting - Send thoughtful follow-up emails reinforcing your dedication - Leverage any internal sponsors to vouch for you

Critical: Don't slack off in PCM while pursuing this move. People talk across teams, and your current performance will be scrutinized. Your sponsors may even get involved in your promotion process.

Your 6-month timeline sounds smart. Getting promoted first strengthens your internal profile and shows you're a high performer worth investing in.

The technical prep is manageable since you're already in markets - focus on the credit analysis and debt structuring aspects that differentiate advisory from pure trading/sales.

Sources: https://www.wallstreetoasis.com/forum/investment-banking/how-to-prepare-for-restructuring-technical-questions?customgpt=1, https://www.wallstreetoasis.com/forum/investment-banking/lateral-internally-from-st-ft-to-ibd-ft-bb-tips-story-and-advice?customgpt=1, leveraged finance interview - what to prep