RE credit internship prep

Hi monkeys,

I have an RE credit summer internship lined up with my dream firm, and want to start preparing to maximise my chances of converting into a full-time role. Any advice on what to focus on? As a side note, I am currently doing an RE acquisitions internship but not looking to convert this as the firm is not great

 

Not much you could do really. Maybe brush up on PPT and Excel (with more emphasis on PPT imho). Since you're currently interning in acquisition maybe ask your team if you could take a look at term sheets/SFAs of previous deals so you can get a better understanding of covenants used, security package etc. There isn't much on BREDS on the web, but maybe have a look at BXMT (earnings calls, presentations etc.). Good luck

 
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Here are some random credit/debt topics that come to mind. Probably overkill to go in-depth on each one before starting, but some high-level reading on the topics might be useful.

  • Debt  metrics: DSCR, debt yield, LTV, mortgage constant, amortization tables, etc.
  • Loan-specific documents - term sheets (mentioned above), loan agreements, mortgage docs (probably unnecessary, etc.
  • Loan structure stuff - covenants, recourse/non-recourse (carve-out guarantees), carry guarantees, term, extension options, etc
  • For construction loans - construction draws, interest reserve
  • With LIBOR going away, understanding of SOFR, possibly BSBY.
  • I imagine the BREDS funds are levered at the fund level with lines of credit / subscription facilities, could look into that
 

How did you prepare for the interview?? Im big into the credit/debt markets and have some knowledge but not enough. I want to learn as much as I can to be very knowledgable in this space that interests me. do you have any recommendations or guides?? For context im at a "chicago target" but a semi target for NYC etc and a sophomore.

 

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