Hi All,
I'm an undergrad and have a lev fin interview this week and was wondering what the key topics and technicals i should prepare for are? are there any specific things related to this field you believe are common to get asked about in an interview?
Thanks
For sure know the basics of bonds, yield curves, pricing and interest drivers, and have an opinion on both the fixed income markets and equities markets. Know the characteristics and structure of debt (senior, junior, mezz, equity). It's less likely, but they might ask you about debt schedules/ waterfalls so you might want to review that as well.
Know the difference between investment grade bonds and high yield bonds. The ultimate goal of LevFin is to provide clients with an optimal capital structure to help the client achieve their goals in the best manner. Whether a merger, acquisition, or capital injection. Good luck with the interview!
Check out A Pragmatist's Guide to Leveraged Finance: Credit Analysis for Bonds and Bank Debt. Good luck. If you can't get hold of the book there is a summary somewhere online on scrib if i remember.
The most important aspect will be credit analysis and how to assess a company's debt capacity, knowledge of the yield curve / markets etc is less important as long as you have a sensible view on the market. Chapters 4 and 5 in Rosenbaum & Pearl are great primers on Lev Fin and LBO modelling. Read these 2 chapters thoroughly (PDF available of the book online) and you'll be well prepared. Reading S&P's primer on leveraged loans (http://www.leveragedloan.com/primer/) will also be a worthwhile exercise. People often overlook the loan element of the market when preparing for interviews. If you're interviewing for a MM firm, read up on BDCs / direct lending funds, as they are continuing to grow in stature and compete with IBs for MM deals.
LevFin 1st year Analyst Interview-LBO? (Originally Posted: 01/17/2014)
Obviously I should be prepared for anything, but do you think they would make me lbo model a company as someone interviewing for a 1st year analyst?
They can ask you anything about debt. I used these site to prepare. Good luck
http://www.leveragedloan.com/primer/#!what-are-leveraged-loans-used-for
Wow these are great. Any other resources would be greatly appreciated.
I interviewed once with a LevFin group that gave me a case study which involved a simple FCF model. More important was the analysis of the business on whether or not it would make a good leveraged loan investment.
Wow- I feel like I'd be slightly stumped on that. Was it a BB by any chance? Also, did they ask key ratio questions such as coverage ratios, etc.
You need a growth rate...A start up would have most of its assets as "growth assets"
Are there comparable firms?
gets difficult when you only have one sales figure. after all, you don't even know whether the company is profitable (or planning to be in the near future). you sure never know this when valuing a startup, but having more figures lets you build decent proxies....
Lateral Levfin interviews (Originally Posted: 02/13/2017)
Hey Guys, I have just finished by first year in a cb group at a large euro bank now looking to lateral to LevFin. I was wondering if anyone has had experience interviewing at the "Experienced analyst" level for levfin at any of the BBs. I am curious to how difficult interviews can be at level? I have a solid grasp on the mechanics of an LBO but dont think I could explain tiny details orally yet. Any input or experience with this move?
Make sure you know your shit inside out. They will test your skills and your ability to do the job from day 1.
I figured so. Will technicals be just geared around LBOs?
Corp/Lev Finance IBD Interview Question Prep (Originally Posted: 10/06/2016)
Hey guys. I have an investment banking superday with a BB next week in Oil & Gas. However, through my first two rounds, and through speaking with people who have done this process in the past, they are very technical, especially with Corp/Leverage finance questions regarding debt/equity issuance and whatnot. I was wondering if anyone had resources or sample questions to help me prepare.
Examples of Questions - "Why would a company issue notes at a 3% discount to face value" "How could a company raise more debt without increasing interest payments" (I can't recall the question. It was something like this, and the answer was "Either going to FOREX (USA) market, or negotiating new debt covenants)"
Given the questions you provided I think you'll be fine with the respective chapters of the breaking into wallstreet guide and with the debt related chapters of the Rosenbaum book
BofAML LevFin Interview (Originally Posted: 12/21/2012)
Have a first round phone interview for BofAML SA in LevFin coming up soon. Any advice on what to expect? Fit vs technical? Any advice would be greatly appreciated.
bump
all fit cept a few questions about why you're interested in debt
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