6 questions reported in Silver Point interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
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Hard
Model builds
Built in the spreadsheet grid
Structuring for downside, collateral, priming risk and recovery. 6 questions
A foundational distressed-investing concept used in recovery and control discussions.
What is the fulcrum security in a restructuring, and why do distressed investors care about it?
Tests whether a candidate separates the face amount of a claim from its economic value.
You buy $100m face value of first-lien debt at 65. What does "at 65" mean, and what determines whether the trade is attractive?
A distressed-debt trading screen that tests whether a candidate can reconcile a quoted price to the actual cash required to settle a loan purchase.
You buy $20m face value of a loan at a clean price of 72. The loan pays a 6% annual cash coupon, interest accrues on a 360-day basis, and 90 days have passed since the last payment. What cash do you…
A practical distressed-credit question on buying bankruptcy claims rather than syndicated loans.
What are the distinctive risks when buying a bankruptcy claim, and why can the purchase price differ from the expected plan recovery?
The core quantitative exercise in distressed credit.
A company has $400m first lien, $250m second lien and $300m unsecured notes. Normalised EBITDA is $120m and comparable businesses trade at 5.5x. Calculate recoveries and identify the fulcrum security.
Special situations and distressed funds compete to provide it.
Why is debtor-in-possession financing attractive to a lender, and why would an existing creditor provide it even at a loss-making rate?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Silver Point.