Mod Note (Andy): Q&A/Interview Tuesdays! Email me ([email protected]) if you'd like to do a Q&A or interview for WSO My background is working in a high yield/distressed trading desk as a research analyst and trader, before making the move to a credit hedge fund within one of the major PE firms. The guys on the public side of the wall are a different breed than the private-side banking guys, who I think have a pretty high level of representation on this board relative to fund guys. A little rougher on the edges, and probably a little more intense in general. Hopefully I can shed some
11 Sep 2020
Is one better than the other ? Harder to get into than the other or more or less the same? Do people with IBD M&A experience (no debt experience), move to the Credit/ Special Opportunity arms of the funds?
22 Jul 2020
I have an upcoming second round interview at a private credit firm, and trying to get any insight on how to properly prepare. I have been in the credit lending space for the last couple years, but we specifically do senior lending. The firm I am interviewing at primarily does direct lending but also participates in mezz and co-equity investments. Can anyone expand on some of the following for me: 1) What to expect in terms of technical questions? 2) How to properly distinguish where to invest across the capital structure? Or where to read up on some of this stuff? 3) Any general tips/tricks
09 Sep 2020
I've been tasked with reconfiguring a credit model, orginally had a 100% cash sweep going straight to debt repayment, now an equity portion is being introduced with a dividend. My question is how to factor this dividend payment into the model? I need to know how much distribution the company can payout while also paying down the debt. Would a set mandatory amortization for the debt, then a dividend payment, then an excess CF sweep be the correct way? Thanks.
09 Oct 2020
There was an old post on this topic with a interview with Marina Lutova Meyers, the previous credit PM, but I found credit guys at Citadel don't stay longer than 2-3 years. (maybe this is a citadel thing, rather than a credit team thing...) Pablo Salame, came to head the credit franchise, replacing Eric Felder, in late 2019, and I do see he has bought in a couple of new guys to the team. Wanted to understand what's the latest with the credit strategy. Anything on this team would be much appreciated! Here is what I observed / guessed: Citadel was never a distressed / special sits shop, and I
30 Apr 2020
Let's get a nice chain of 2020 comp data from folks in the credit and equity research space. I'll start: Title: Credit Research Associate (1st year) Rank: Bottom, first post-MBA job Firm Type/Size: Buy-side, $200B AUM Base/Bonus: $110/45 City Description: low COL city in U.S. Looking forward to seeing how everyone fares for 2020. 2019 thread: https://www.wallstreetoasis.com/forums/equitycred…
18 Feb 2020
I'm about to be a graduate of the Class of COVID-19 from a non-target school. I'm exploring career opportunities in finance and, since there are so many of them with various titles, I often get confused about what the jobs entail. With that said, could somebody please explain the differences between these jobs in terms of the responsibilities? Some of them seem to overlap to varying extents and I found that one credit analyst position might be different from the next. Thanks in advance.
02 Apr 2020
Hi Everyone, Long-time lurker over here currently at a credit hedge fund focusing on special situations and opportunistic credit. Haven't seen all that much about private credit vs. private equity. Been trying to assess whether I'd like to stay on the credit side or move to the equity side. I like the creative side and uniqueness of the structuring around credit, but I have more of an entrepreneurial mindset and feel like I'd like the PE side of things. I'd love to hear people's take on private credit vs. private equity. What hypes you up about credit/equity? What's the comparative work life
13 Oct 2020
As someone with a credit interview coming up, I was wondering if you guys can provide some examples of bond math I might expect walking into an interview. Is it usually just solving for yield (YTM, HPY), or price? What is the way to approach these interview questions (liberal arts major so have no previous credit experience) Thank you very much!
26 Apr 2020
I am a current IB analyst (boutique) looking at the path of MF Credit (let's assume it's either Private Credit or HY / Distressed) --> L/S Credit HF vs. right to a L/S Equity HF. Curious what the differences would be in risk tolerance at both shops on the HF side of the equation, which I view as the ultimate point of comparison. Also, have you seen people go from L/S Credit to L/S Equity on HF side? Summary of my thoughts on both, please correct me if I'm wrong but this is what I've gathered to date: L/S Equity HF (assume longer term hold period - so not MM pods) Unlimited upside to longs (i.e
03 Sep 2020
I spent ~5 yrs on the sell side getting my own coverage in a financial services niche. Moved over to the buyside over 5 years ago to help build out an equity platform in a primarily credit shop (with a nuts and bolts operating business). The idea being to leverage our operational and business expertise to invest in businesses that are tangential to what we do. Because equities aren't the primary product we invest in, my experience is likely a bit different than a lot of other hedge fund professionals. We are opportunistic with investments with no defined portfolio size. We have a more
17 Sep 2019
Hey All - I am interested in working at a HF upon graduating uni. I am currently studying at Oxbridge and have some internship experience in finance where I picked up essential modelling and valuation skills through the firm's training program. I have been reading into some HF strategies, namely L/S and distressed, and I was wondering if anyone could point me in the direction for resources to learn more about L/S and credit investing - I'm fairly new to concepts in the credit space but would love to learn more. I've heard that Moyer's distressed debt analysis is a good book to read, but could
23 Dec 2020
Long story short; I've been a large cap equity analyst for a boutique IB for about 10 years now, and I'm now working on a new project--we're building an all electronic exchange for local currency denominated emerging market debt, starting in southeast Asia and planning to build out from there. Our added val is providing faster settlement thanks to in-country partnership, better access to more buyers for the same reason, and more price transparency than most buyers get when dealing with our target market. My problem is that this is a tremendous leap; I have great relationships with the buyside
16 Dec 2020
Hello - does anyone know of a credit training class I can take? I am unemployed and would like to apply for those types of jobs and willing to pay for a class to learn that.. Thanks, Amy
30 Nov 2020
Curious to hear folks' approach - to those in the stressed / distressed credit space, how have you had success sourcing differentiated ideas? Obviously a simple price / YTM screen will get you a laundry list of names, but what other tricks do folks use to find ideas a bit more off the run (that maybe wouldn't show up on a >10% YTM screen, i.e. buying a par credit that previously traded well above par)?
05 Nov 2020
For a FIG (non bank) ratings associate is IB or a PE role even remotely attainable? I've rated LBO. HY transactions and standard IG published research.
03 Nov 2020
All, Quick background on me: non-target, liberal arts guy guy bounced around a few temp backoffice jobs before landing in a ratings shop doing middle market/spec grade ratings. Been trying to break into the buyside for years now with no luck. Have had to send 100s of emails, eventually succeeded getting a few interviews, but unfortunately no luck. Been trying with networking but seeing no payoff really in terms of opportunities for me. Now the years have gone along and I am 30. Doing well in my current role but want to leave as I've been here way too long and would like to try something new
15 Oct 2020
Hello all, if you had the opportunity to choose between either of these opportunities (Laz/Evercore ECM) versus (Bain Cap/KKR/Oaktree Credit), what would you consider as the pros and cons of each? Different experiences and different sectors, but great opportunities regardless, and curious what insights people may have.
08 Oct 2020
Hello all, I am currently deciding between two offers, both from regional commercial banks (~$10B in Assets). One offer is less money and offers a formal credit training program, while the second is a lot more money, but with no credit training. The goal is to move into a LevFin role down the line, but I am wondering how valuable the credit training is, and what kind of weight it holds. Appreciate the help.
27 Mar 2019
Dear friends, I'm preparing for an interview in credit sales and trading and was wondering what do people do in this business. I have two years' experience as a CDO manager and alternative credit investment advisor. According to the headhunter, the position I'm about to interview will focus on structured products and high yield. In the pre interview, they asked if I have worked on a credit trading desk before, and I said no. My past experience was about searching for alternative credit opportunities (like special financing, high yields and some stuff with more complicated transaction structure
19 Jun 2018
A close friend of mine is at a crossroads & needs some help. I'm going to turn over my account to him and let him ask the question: Hello everybody, I'm in a tough spot. I'm currently enrolled as a sophomore at a non-target. My freshman year, I worked/networked extremely hard and did a summer internship in private equity. For the upcoming summer of my sophomore year, I managed to get an offer as a private equity & credit summer analyst at a top PE fund (think KKR/Ares/Apollo). My issue is that recently a headhunter for a VC firm reached out to me and said they'd like me to work for them this
03 Apr 2018
Not sure where to even start when interpreting and projecting accruals and deferrals. Like what do they even mean (specifically on the CF statement), since a lot of these numbers dont actually represent cash inflows/outflows but are just 'canceling out' what is recorded in net income
27 Jun 2020
Tomorrow I start my first rotation on an EM structured credit financing group, and I was wondering if anyone has worked in/currently work in a similar role. If so, can you describe some of the responsibilities of a junior member and any resources I can look as I familiarize myself last minute? The desk is specifically LATAM focuses. Thanks in advance
21 Jun 2020
Background: 1.5 yrs in ABL at a BB covering a variety of industries: manufacturing, distribution, materials, consumer products, etc. mainly with sub-investment grade/distressed companies. Non-target; sub 3.7 GPA. Any advice on how to position this experience to lateral into a 1st year IB analyst role? Is another BB/EB possible or is MM more likely? My current responsibilities include: - Underwriting various transactions (proposed M&A's, restructures, divestitures, etc.) by evaluating different credit metrics (leverage, FCCR, debt capacity). Modeling is not terribly advanced (mainly cash-flow
28 Feb 2018
With direct lending becoming an increasingly popular field, I was curious if anyone had any insight into what typical comp looked like on the junior level. My understanding is that it's slightly lower than PE and carries a lower base but higher bonus (at least as a proportion of total comp) to banking but would really appreciate some harder data points given the lack of information out there. Does anyone have any insight into this topic? I'm specifically curious in the delta between comp at the top shops that recruit almost exclusively LevFin IB talent like Golub, Ares, GSO etc. compared to
18 Feb 2019
Hi guys, question for someone who used to or is working for some the big three rating agencies. How would you compare the compensation with IB? The working hours? Is is common to stay just for few years and then to switch for IB or something more business wise? How do IBs look at candidates with a background from rating? Thanks!
25 Mar 2017
If you want to be in IBanking you have several companies like Wall Street Prep or BIWS that sells guides on how to built financial models and evaluate companies from scratch. What about for credit analysis? Say a company wants to borrow $300 million dollars. Is there anyway guide out there that'll walk me through how to assess the company and do a credit write up? I am personally looking to break into the credit segment of finance, not sure what industry I want to focus on yet, but you all know how hard that is without any prior experience or connections. My end goal is to create several
07 Sep 2017
Have an interview with these guys for their Chicago office - does anybody with more experience in private debt have opinions on this shop / their reputation? It sounds like they have been busy and are growing but haven't been able to find much on them and I want to evaluate the opportunity relative to staying in New York.
06 Feb 2020
Im currently working in the "Lev Fin" group at a MM .commercial bank (think US Bank, Capital One, Citizens Bank). To avoid any confusion, we don't have an IB division so our version of Lev Fin refers to the specific lending team that specialize in financing deals backed by PE firms (LBOs, Dividend recaps, growth financings etc.) It's typically higher risk than vanilla commercial lending and its all centered around M&A, so the underwriting process can be pretty interesting. However it feels like banks are being pushed out of the space by regulation and I'm having second thoughts about staying
09 Mar 2017
I'm interested in learning more about what GS's credit alternatives group does. I believe they were previously called Liberty Harbor, but transitioned over to just being known as GS Credit Alternatives or GS BDC. Do they primarily make senior debt investments, and if so, what % of their portfolio is senior debt vs junior, unitranche, equity, etc? Any insight into group culture/pay/exits would be great as well. Thanks!
01 Aug 2016
Hi guys, Do you think it is feasible over 6 months to be brought up to a competent Associate / Snr Analyst at a 4/5 person Mezz fund, with limited debt experience? I have an offer and need to consider day-to-day, how difficult is the job to be brought up to scratch in order to convert to full-time.. Please note I have c. 1-1.5 year M&A experience but limited practical LBO application and will be the only junior in the team for the first two months (with 3 directors) Many Thanks!
24 Sep 2016
by Dr Constantin Gurdgiev, Adjunct Assistant Professor of Finance with Trinity College, Dublin In many jurisdictions around the world, policymakers and economic analysts are keen on promoting the virtues of credit systems as drivers for growth. Even in more conservative, boom-and-bust weary economies, conventional view of financial services is that the investment and savings facilitation provided through credit systems to the real economy is a good thing. Thus, ever since the onset of the Global Financial Crisis, euro area and other advanced economies' policy makers have repeatedly stressed
30 Jun 2015
Hello, I have an interview with one of the Big 3 credit ratings agencies soon for an entry-level position, and am wondering exactly what type of questions I could expect. Can anyone help with this?
12 Mar 2015
My credit limit is $2K. I've had the card for a year. I need to ask them to raise my limit, I know. I usually spend like $1K a month and pay it in full when the bill comes in (~15 days early). The bill comes on the 15th. I'm already at $1,700 for the month. I probably won't go over my limit until the 15th, but is it better for my credit if I pay off like $700 now and then just pay whatever the bill comes to when it comes in?
02 Jun 2014
Hi, This summer I'll be doing my junior year internship in credit investing with a big name firm. My prior internships are with a hedge fund and a PE fund. Let's say I get a full-time offer with the place I will be interning and accept - what are my exit options from credit investing there? Go to a credit focused hedge fund? Also if I want to recruit again in the fall of my senior year what will my options be? I know I want to be an investor but I am unsure what asset class is most interesting to me. Thanks!
16 Dec 2015
Hi guys: I was wondering if anyone can suggest some interesting European credit names to look at please? I'm a current credit analyst based in Asia who is hoping to transition into credit in UK. As part of my recruiting process, I want to create some credit pitches that can be brought up during my networking etc. I would really appreciate it if I can hear your thoughts on what are some interesting names to look at in European credit now (IG/HY all okay). Thank you!
29 May 2015
Can anyone tell me what the travel and expense reimbursement policy looks like at Deloitte S&O? Specifically - can we use our own credit cards or are we forced to use the company card? Meals - are there specific guidelines as to how much can be spend per meal? a daily rate? 'don't be crazy'? Flights - is there a threshold of flight time to get first/business class?
14 Feb 2016
feel free to ask me questions as a credit trader at a macro fund. i love my job and have decent experience, for those looking to get in the industry, keep it professional and I may be happy to answer some questions. based out of london. keep it off pay and firms, and I am happy to share some thoughts. if its genuine happy to chat and keep working hard. best regards!
07 Dec 2016
Hi, This might be a dumb question but Is there a credit analyst (risk) in every group? From Asset Management to corporate banking? what companies do entry credit analyst apply to? I know rating agencies, and commercial banks. But what else?
10 Jul 2015
The following is an interview with Credit Risk Associate Pirho (he is also available to answer your questions). Are you a professional and want to do an interview? View our interview template here and then email me your responses to [email protected] What is your current job title and a one sentence description of your primary job responsibility?I'm a credit risk associate in the financial institutions group at a major US bank. My job is primarily analyzing the creditworthiness of banks in various countries and determining whether or not we want to lend, engage in derivatives
21 Apr 2013
Andy note: "Best of Eddie" - while Eddie is on vacation we're throwing up some of his classic posts from the past. This one from June 2010 is part of the very popular "Sell Your Options" 5-part series. More to come later this week & next. If there's an old post from Eddie you'd like to see up again shoot me a message. Unsecured consumer debt is a relatively new phenomenon in our country's history. Believe it or not, I can remember a time before Visa. When I was a little kid, credit cards were so rare that most businesses didn't accept them (debit cards didn't exist either because, well, ATM
02 Jul 2012
I am a sophomore at Baruch College majoring in Applied Math. And I am interested in a career and a summer analyst internship next year in credit risk at a BB IB. I heard that Baruch is recruited heavily for middle or back office. Front office not so much. Since risk is middle office I want to know if the BB IB recruit from Baruch for credit risk/ risk management?
25 Jan 2016
Hi, I am currently at a boutique consulting firm (~1 year of experience) and am looking to lateral into IBD in ~2 years. I am considering an offer for an operations analyst role at one of the CRAs (S&P, Fitch, Moody's). Although the role is in ops, I've been told by the interviewer that, with some networking, getting exposure to credit model validation / research is a possibility. Further, they seem to sponsor the CFA. I am wondering if this is a great opportunity to jump on or whether I should wait for other finance related opportunities that I can use as stepping stone for an eventual
07 Jul 2015
If you're at a quant shop, do you or your firm deploy automated trading to transact in illiquid private debt [broadly syndicated corporate loans, ? What could be improved on to improve your advantage and how do you compare to others on across the industry? If not and settlement times could be brought down to corporate bond at T+3, would you be inclined to move up the capital structure?
06 Apr 2018
Hi everyone, My background is M&A (2years) at elite boutique in London (think Moelis, Laz, PJT). I have now 2 opportunities: 1) join a Principal Investment team from a global asset manager (think Brookfield, PSP, CPPIB). Investments are done across the credit spectrum. They would for instance buy large chunks of NPLs from failing european banks, do some large ticket direct lending, or provide loans for sponsors. The approach is very much like private equity and the book in clearly illiquid and not traded on public credit markets. They work all the time with consultants and lawyers. I think
19 Mar 2018