Hi guys, I have an interview at a small credit-oriented fund and I was wondering if anyone had any advice on what sort of HF interview questions to expect. I know every fund/interview/interviewer is different but any experiences or advice is appreciated.
Thanks!
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credit fund focused on what?
primary subordinated lending on LBOs (mezzanine), primary senior lending (Term Loan B's), DIP Lending / Revolvers, secondary senior loan purchases, do the focus only on investment grade credit (bonds & CP), do they finance LBOs etc.
Since each one is different, the skillset is also different and therefore the questions will be, you guessed it, different...
Def understand the basics. Understand how bonds are priced. Know the definitions of the debt mentioned by the poster above, i.e. revolers, term loans, corp bonds, munis. Understand why these instruments are used.
Know the cash flow cycle. Why do these bonds exist (to provide cash to the company issuing). Why does a fund by these instruments ( 1. hold for interest payments, 2. hold for resale, make money from change in price of asset just as someone might buy an equity.)
Understand leverage (metric like debt/ebitda), understand coverage (EBITDA/Interest).
Understand pricing (again) Bonds are priced at LIBOR + BPS. LIBOR = RISK FREE, BPS = RISK OF COMPANY.
Great, thanks guys. I'm def. freshening up on the basics, the fund invests in a lot of different types of debt so I'll just try to be prepared for anything.
Thanks again!
Focus, just like the two responses above.
Resurrecting this from the dead because I am in a similar position, except I am experienced in corporate credit (1.5years of rx and credit combined, all sellside). I know the basics outlined above.
This is for a HF credit/fixed income analyst job, all fundamental and relative value based. They dont do distressed, but it seems as they they focus on stressed/high yield. Its a relatively large fund by AUM, with a few $B.
Should I expect to have to pitch a credit idea? (on one hand, I think this could be setting the bar too high; on the other hand, its a credit fund, so d'uh)
Any other stuff that you guys like to ask? or have been asked? or think I should expect?
Thanks!
Yes, be ready to pitch at least one idea. If youre in RX/credit already, this should be easy....
Thanks. Does anyone else have insights on what else I can expect?
any info on carlson lp?
Also, for future reference, DDIC contributor/member on or off the resume? If on the resume, do you guys think it would be best under work experience?
I dont exactly have an "other" or "misc" section on the resume, and it would feel silly making an "other" section for a bunch of retarded undergrad extracurriculars + DDIC.
To date, I've been including it in my blurb about myself in resume-drop emails, but not on the resume itself.
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