Aviation ABS Analyst Interview — What Should I Expect?

Based on the most helpful WSO content, here's what you need to know about preparing for an ABS Analyst interview in aviation finance:

1. Interview Focus:

   • These roles often blend technical and industry-specific knowledge. Expect questions that test your understanding of aircraft leasing, fleet dynamics, and aviation ABS structures.
   • While your buyside experience is valuable, they may probe deeper into cash flow modeling and structural analysis, as these are critical for ABS roles.

2. Technical Assessments:

   • Modeling tests or case studies are common in such interviews. These could include:
     • Cash flow modeling for aviation ABS deals.
     • Evaluating lease structures and their impact on cash flows.
     • Analyzing credit risk and collateral performance.
   • If your modeling exposure has been limited, it’s worth brushing up on structured finance modeling and lease cash flow projections.

3. Capital Markets vs. Leasing Knowledge:

   • The emphasis may vary by firm. Some may focus more on capital markets expertise, such as understanding ABS issuance, pricing, and investor dynamics.
   • Others may prioritize aircraft leasing knowledge, including fleet management, residual value analysis, and market trends in aviation.

4. Behavioral and Conceptual Questions:

   • Be prepared for behavioral questions that assess your problem-solving skills and ability to work under pressure.
   • Conceptual questions might include:
     • "What makes a good aviation ABS deal?"
     • "How would you evaluate the creditworthiness of an airline lessee?"
     • "What factors influence the residual value of an aircraft?"

5. Preparation Tips:

   • Review recent aviation ABS deals and familiarize yourself with their structures and performance metrics.
   • Practice financial modeling, focusing on lease cash flows and ABS structures.
   • Understand the key risks in aviation finance, such as airline credit risk, fuel price volatility, and aircraft depreciation.

Your prior experience on the buyside will be a strong asset, but demonstrating technical proficiency and a deep understanding of the aviation finance space will set you apart. Good luck!

Sources: Interviewing for a SA or Analyst position? Here's what I'd want to hear as a VP., Analyst Interview - Common Questions, Interviewing For Infrastructure Investment Roles, A Few Observations on Investment Banking Exit Opportunities, How to Navigate FT Recruiting: Learn from My Successes/Failures