Distressed / High Yield Credit Pitch
Currently interviewing with a credit fund for a credit analyst position. They gave me a company, and told me to look at said company and provide a model and investment memo to the team and present my ideas over Zoom.
These are all the details I have.
so a few questions
1 - How long should my presentation be? The whole interview is 1 hour. I wanted to aim for maybe 20 minutes.
2 - How exhaustive should my investment memo be? 10 - 20 pages walking them through my whole model including screenshots? Do I put my investment thesis on the first page before I dive into the company overview, market overview, financials etc.?
3 - The company they gave me has been benefitting from COVID and has been able to increase their margins. Overall very solid business and macro outlook is constructive as well. They have 2 term loans, 1 secured bond, 3 unsecureds. Def see more relative value in the TLs and the longer-dated unsecured. Is it okay to tell them to just go long a TL and the unsecured? Or should I rather suggest going long the TL and maybe short a competitor? or short something within their own cap structure? should I present potential hedges?
4- what information regarding my proposed investment should I present? just a returns analysis with an?
5 - although business is highly levered they are CF positive and generating enough cash to have sufficient liquidity over next 5 years. Should I nonetheless present them with a bankruptcy case / recovery analysis?
Any help is greatly appreciated!