Credit Question

Hedge funders,

I'm a credit analyst underwriting bank debt and looking to get some exposure to how the underwriting for bank debt differs from investment grade bonds, high yield bonds, and mezz debt. Does anyone have recommendations on blogs, articles, books, or otherwise to get some exposure to other debt securities? A long term goal would be to be at a credit fund, but for now I'm really just trying to get as much experience and work as hard as I can.

If anyone's feeling generous with their time this weekend and wouldn't mind a 15 minute phone call, that would be infinitely helpful too. PMs are welcomed.

Thanks

Comments (2)

 
Feb 21, 2015 - 9:54pm

For HY, mezz, and distressed there are really only 3 questions that matter for most corporate credits:
- What is EBITDA?
- Which way is it going?
- What is the multiple?

Forget the models and all that other shit. With that said, you actually need to understand how the business works to answer all of these questions. At my old bank, nobody actually understood businesses in any detail whatsoever. There was also very little/no emphasis on valuation.

Not sure that there are any books specifically for learning this particular subject.

Array

  • 1
 
Feb 22, 2015 - 6:45pm
Listen, here's the thing. If you can't spot the sucker in the first half hour at the table, then you are the sucker.
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