interview questions with leveraged loan hedge fund?

[Nightshade]

I have an interview with a hedge fund that invests in senior secured loans, mezzanine and second lien loans and high yield bonds.

The interview is with two credit analysts for the position as a credit analyst. I have not applied for a position for a long time, so I'm a little bit out of practice.

1) What questions might they possibly ask?

2) Are there any other resources? I got the vault guide to leveraged finance.

I appreciate any info.

Thanks for your input

 

[MFE]

ask them how they expect to make money when credit spreads are still at multi decade lows.

 

[FIAnalyst]

MFE Wrote:
-------------------------------------------------------
> ask them how they expect to make money when credit
> spreads are still at multi decade lows.


Pairs trading / relative value type plays.

Or just get straight out short.

Just because they invest in securities that might be overvalued, doesn't mean there isn't value to be found; it could be a straight short position, or a pair trade, etc...

 

[MFE]

FIAnalyst Wrote:
-------------------------------------------------------
> MFE Wrote:
> --------------------------------------------------
> -----
> > ask them how they expect to make money when
> credit
> > spreads are still at multi decade lows.
>
>
> Pairs trading / relative value type plays.
>
> Or just get straight out short.
>
> Just because they invest in securities that might
> be overvalued, doesn't mean there isn't value to
> be found; it could be a straight short position,
> or a pair trade, etc...


f'N GENIOUS! they must be trying to generate absolute return or something..... I think I may start a "new" fund off that concept. think someone already has?

 

[roshnroll]

ask them what their opinion is on the current trend of "Covenant-Lite" loans. Read about that a little bit too.

 

[roshnroll]

also....as far as resources go, the S&P website has a very good Leveraged Loan primer. Its a 30 page concise PDF doc. Very informative

 

[kkent]

Could you, uh, do me a favor? Ask them what their educated prediction is of US interest rates in the next 6 months to a year. And then report back to me...(I want to know if I should buy or sell short gold!).

BTW, from what I can tell, lots of good questions is a good thing.