Fixed Income Pitch
Hi,
I have an upcoming interview for sales and trading within the fixed income division at a BB. While I am familiar with doing equity stock pitches, I'm not really sure about how to do a fixed income pitch (on bonds, currencies, etc). What type of information would you typically include in the pitch?
Any advice would be greatly appreciated. Thanks!
Is there a specific portion of fixed income you will be working in? For example, high yield bonds or municipals?
Nope. Just a general final round for the fixed income division.
Fixed Income Pitch Question (Originally Posted: 10/03/2014)
I have to do a fixed income pitch as part of an upcoming job interview for an analyst position in the Fixed Income team. I have the option to pitch any fixed income asset. However I have no idea where to begin. Is there some sort of format to follow like stock pitches? I have been exposed to a lot of equities research, however have minimal experience with fixed income research.
There is no common template but if this is for a more fundamental credit analyst role I would focus on the following: • Company overview – how it makes money / key markets of operation • Investment Recommendation – do you like the fundamentals of the company looking out into the future? • Fundamental strengths and weaknesses • Financial summary with several years of the key business drivers • Relative valuation – who would you compare this company to, what are their financial metrics, and where are their bonds trading?
Fixed Income AM interview - Bond pitch? (Originally Posted: 03/06/2016)
How do you pitch a bond...?
The interview is for a small local firm (~10B AUM) and I'd be covering financials both IG and HY. I'm quite familiar with analyzing banks and insurance companies and pitching their stock, but not bonds...
Should I risk pitching a bond or stick to what I know best and pitch a stock instead?
Thanks in advance! :-)
How much credit research experience do you have?
https://sumzero.com/headlines/consumers_and_retailing/CZR/44-buy-caesar… was the first thing I was directed to over as I was prepping for a summer in a credit research role a few years ago. It's short but covers the major bases of any corporate bond pitch. If you can get your hands on some sell-side credit research that would be helpful as well. But... if you can't confidently talk about concepts like coverage and leverage ratios, loss given default and recovery rates and how they tie into your thesis (forget stuff like covenant analysis for HY) then just stick with your stock pitches.
Hi gavin, thanks for your answer. I'm pretty comfortable "talking credit" and actually doing the credit analysis, but what I don't know how to do is tie it into a investment pitch.
For example in a stock pitck, after going through the business/industry ect, you suggest a valuation and back it up with your arguments. From there you can make statements like "in my bull scenario this stock provides X% upside and -X% on my bear scenarioi" ect.
But because you can hold a bond to maturity, sell it prior, it can be called, you can use different duration strategies ect and the potential returns varies in each scenario, what kind of conclusion should you give? Or do you really just end with something like "I'm confident they'll pay up"?
Have your fundamental analysis of the credit complete - what are the drivers, what is the outlook, etc. Then work on the relative analysis – where it is trading compared to peer companies. Would you invest in the credit? If so, where in the capital structure and how far out would you go and why?
Awesome thanks for the input! Would my approach change depending on whether I'm pitching IG or HY? The position I'm interviewing for does both but mostly IG.
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