Trending Content - Sales and Trading Forum
Career Resources
WSO Free Modeling Series - Now Open Through
August 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
I don’t work in distressed debt, I work in rates (Analyst 2 and actively managing risk in derivatives book), but this is how I would think about it.
These are just but a few areas I would start with.
No offence but 2nd point us simply irrelevant in distressed and 1st point is relevant only in credit L/S HF where relval is traded but irrelevant in a value-oriented distressed strategy.
For the poster: the interviewer probably wanted to hear that (1) you distinguish between idiosyncratic and systemic reasons leading that security to trade down and that (2) you compare trading levels vs recovery value (both asset-based / liquidation and as going concern).
Considering whether the implied recovery rate is outside the normal bounds of what can be expected is another way to get some RV from distressed investing.
Following
Veniam beatae recusandae natus quibusdam ab iure. Ullam ut quia labore voluptatibus omnis cupiditate. Ex aspernatur quaerat harum deleniti ab nihil voluptatum. Id corporis illum et mollitia voluptatibus.
Quae quam doloremque labore dolorum ex eius omnis. Dolorem nihil modi quam alias dolorem quis necessitatibus. Esse excepturi esse quisquam. Magnam aspernatur deserunt et repellat nesciunt quia blanditiis.
Unde cupiditate est est id iure. Sit earum sunt vitae doloremque placeat rem occaecati. Nisi labore voluptas qui. Atque ipsam quam ut id. Animi quaerat et voluptatum ut et suscipit aliquam. Laborum vero impedit nemo error. Ex quo facilis reprehenderit iste.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...