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Commenting to follow thread.
Also curious as to getting some convincing/realistic "Why Restructuring?" answers.
For the "Why restructuring?" question, the answer should come from personal experience or genuine interest.
I took a course during college that focused on distressed debt investing. The course covered the bankruptcy process in depth and featured speakers in the distressed industry (lawyers, bankers, and investors). Besides it being my favorite course thus far in college, their stories were also exciting. It spurred me to begin following the industry myself, listening to dull, monotone podcasts and reading material on the space.
Additionally, I find the work and environment of the bankruptcy space to be very appealing to me. The environment is very intense and the work is very complex. Restructuring work tends to more technical than other investment banking services.
YungBull,
Appreciate the feedback! I thought you were an aspiring RX banker - great insight.
I guess to ask you your own question, what are some of the resources you use atm to keep current (podcasts/reading like you mentioned)? Also, would you care to share what kinds of technical questions a college student should be actively prepping to break into RX?
Agree with below. If you are trying to articulate genuine interest in RX, you should be able to point to current and recent situations that interest you and speak to why they interest you. Doesn't have to be super in depth but I do a ton of interviews where you ask that question and people are just like "uh... idk..."
The "looking for a more technical experience" and "appreciating the negotiation heavy nature" responses can only get you so far, and at this point, have been mentioned so many times on this board, that they don't really carry any weight for me.
Joining a top 3 RX group FT this summer and I will say that most RX bankers I have met have read Moyer multiple times. The HL case is a good resource as well. As far as why RX, one big thing they like to hear (at least in my experience) is that RX has many more outcomes and different paths it can take, making it more of an art than a science. The consensus among RX folk is that sell side M&A is just running a process that either works or it doesn't, while RX is more thoughtful in the sense that a ton of different things could happen. Never done M&A so couldn't tell you the complete truth of it but I think it's at least true in part. In addition, as far as variety of deals go, its usually a generalist group, and you could be representing the debtor or any of the creditors in the capital structure. This yields a variety of deal experience.
Lol you clearly haven't worked with many RX bankers then (everyone has skimmed it at the very least, but I have never heard anyone say that they have read it more than once)....about 1/10th of that book is relevant for someone just starting out / trying to learn about restructuring. The rest of it is overkill.
If you are trying to go into fundamental value investing then it's a different story....
?
That seems wrong
We could have easily just met different people, I wouldn’t jump to conclusions about each other’s work exp like you seem to have. RX bankers advise creditors as well as debtors, including HFs and distressed PE clients - understanding an investors perspective is relatively important if you’re going to advise them. Yes, reading the book is not a prerequisite for being a good banker in this sector, but the people I’ve talked to in my group and at other RX groups have generally been pretty well-read in terms of finance literature, and this is the first book on their list of recommendations.
Reached out to a few friends in the industry and one gave an interesting resource:
Has anyone ever used this? Looking for more resources similar to this (i.e., focus solely on the space)
Petition is great - highly recommend. Good weekly newsletter with about 3 topics on a company restructuring/bankruptcy a week. They also sometimes have a Q&A that is informative.
Good research resources include debtwire, reorg research, lcdnews, covenant review. TheDeal.com has some restructuring coverage as well. It would be worth asking your university library folks if you could get access to any or all of these services. If you know of distressed names that have publicly traded debt, you may also be able to get embargoed credit research through ThomsonOne, CapIQ or Factiva. Most business school libraries will be able to set you up with access to one of the above.
Moyer is helpful for understanding the concepts and the restructuring process, but it is also valuable to read investor research on distressed names to understand how the market it thinking about a distressed credit. This is where the fixed income research or reorg research could be particularly valuable. The HL case is helpful here too.
WSJ also has a bankruptcy beat that is usually a good read. You won't find as much credit analysis in those articles, but they cover the big topical names.
To tag on to this, Debtwire and Reorg have free podcasts if you're unable to get access to their standard research.
Hey I work for Debtwire. If you're in school and can convince your professor or investment club chair to subscribe for their class/program/club, we (basically) give the service away to students. Bubble gum cigarettes approach, if you will.
Now, once you're in the working world, your firm will definitely pay for the service. That said, if your firm subscribes, we almost always write enterprise contracts, so we don't charge extra to give you access through your company's subscription.
RE: Moyer - that thing was my bible for RX. I keep it on my desk and still occasionally reference it.
Hope that helps.
new to RX, can you link the "HL case" so i can make sure im looking at the right one
How much is a debtwire subscription
Friend sent me this which is really helpful
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