Leveraged Loans (Bank Loans)
I have an interview within the bank loans group at an asset manager next week. I know the term structures are mostly set at floating rates and are extended to corporations that are non investment grade. Im curiouse as to the due dilligence process that goes into pricing these rates. Do they use <abbr><abbr title="weighted average cost of capital">WACC</abbr></abbr> or comparable companies with same credit ratings? Thanks in advance.