Career Pathways in Debt Markets

From Origination to Restructuring

The Deal Gets Done

Origination & Structuring: Where capital structures are designed and financing mandates are won.

Origination & Structuring

Leveraged Finance / DCM

Win Mandates & Structure Debt

Pitch capital structure solutions to PE sponsors and corporates. Determine optimal mix of revolver, term loans, and bonds based on cash flow analysis and market appetite.

Negotiate Terms

Set pricing (SOFR + spread), covenants, amortization, and security packages. Coordinate with credit, legal, and syndication teams to prepare marketing materials.

Example task: Build a sources & uses table showing how $500M finances a buyout, then pitch three alternative structures with different leverage levels.

Origination & Structuring

Corporate Treasury

Manage lender relationships and rating agencies to maintain capital access
Execute debt financings by running RFP processes, negotiating optimal pricing and covenant flexibility
Monitor covenant compliance quarterly using cash flow waterfall and leverage/coverage ratios
Oversee liquidity planning to ensure the company can meet debt service obligations

Example task: Calculate leverage ratio and interest coverage ratio from quarterly financials, prepare compliance certificate for lenders.

Origination & Structuring

Supporting Roles

PE Portfolio Company Finance

Manage debt at portfolio companies post-acquisition. Optimize working capital, coordinate add-on acquisitions requiring new debt, and monitor performance against projections. Build 13-week cash flow forecasts for seasonal liquidity planning.

Legal - Debt Finance

Draft credit agreements, indentures, and intercreditor agreements. Structure security packages and negotiate covenant terms. Manage closing process ensuring all conditions are met and liens perfected.

Money Changes Hands

Distribution & Investment: Where loans are marketed to investors and investment decisions are made.

Distribution & Investment

Syndication Desk

Market to Investors

Promote loans to institutional investors including CLOs, credit funds, and BDCs. Build the syndicate book by gauging demand and managing investor relationships.

Manage Price Flex

Adjust pricing based on demand. If weak, increase spread or modify terms; if oversubscribed, tighten pricing to optimize for the borrower.

Example task: Allocate $400M term loan across 50 investors, balancing large anchor orders with relationship-driven smaller allocations.

Distribution & Investment

Credit Investing: BSL & HY

Broadly Syndicated Loans

Analyze new loan opportunities using cash flow projections and leverage ratios. Participate in bank meetings, make buy/sell decisions based on relative value across 100+ positions. Monitor covenant compliance and rating changes.

High-Yield Bonds

Focus on unsecured bonds with emphasis on recovery analysis given no collateral claim. Evaluate incurrence covenants and assess refinancing risk at maturity. Monitor secondary market pricing and credit spread movements.

Example task: Build a 3-year cash flow model to calculate projected leverage and coverage ratios, determine if SOFR + 450 bps compensates for risk.

Distribution & Investment

Specialized Credit Strategies

Distressed Debt

Identify companies trading below par where recovery value exceeds current price. Build liquidation analyses and recovery waterfalls. Participate in restructuring negotiations or bankruptcy to maximize recovery.

Direct Lending / Private Credit

Originate and underwrite middle-market loans, often providing entire debt package as unitranche. Higher leverage (6-7x) than BSL. Hold loans in portfolio with quarterly reviews and board observer rights.

Living With the Debt

Monitoring & Management: Ongoing oversight, compliance, and relationship management throughout the loan's life.

Monitoring & Management

Treasury & Risk Management

Corporate Treasury

Calculate and report leverage and coverage ratios quarterly for covenant compliance. Manage cash flow to ensure liquidity for payments. Execute amendments to increase capacity or extend maturity as needed.

Credit Risk Management

Monitor portfolio credit quality across hundreds of positions. Establish risk limits by obligor and industry. Conduct stress testing under recession scenarios and prepare risk reports for senior management.

Example task: Prepare quarterly compliance certificate showing 4.2x leverage against 5.0x covenant, with narrative explaining 15% EBITDA growth.

Monitoring & Management

Supporting Infrastructure

Loan Operations & Administration

Process interest payments, amortization, and fee calculations monthly. Maintain loan records across platforms. Execute amendments and waivers with proper documentation. Coordinate draw requests and prepayments with borrowers.

Rating Agencies

Assign and monitor credit ratings (AAA to D) reflecting default probability. Meet with management annually. Publish research analyzing credit strengths and weaknesses. Take rating actions when credit quality shifts.

When Things Go Wrong

Restructuring: Navigating distress, bankruptcy, and turnaround when debt can't be serviced as originally structured.

Restructuring

Restructuring Advisory

Liability management for distressed companies: amend-and-extend, debt buybacks, refinancing strategies
Out-of-court restructurings by negotiating covenant relief, maturity extensions, and new money with lenders
Chapter 11 bankruptcy processes: develop plan of reorganization, coordinate with creditors' committee
Financial projections demonstrating the company can support restructured debt levels

Example task: Negotiate forbearance agreement giving company 90 days to fix covenant breach while seeking amendment from lender group.

Restructuring

Distress Perspectives

Distressed Investing (Buy-Side)

Buy debt trading at significant discounts. Analyze enterprise value and recovery waterfall. Participate actively in restructuring negotiations. Execute loan-to-own strategies or debt-for-equity swaps to take control when appropriate.

Corporate Treasury / CFO (Borrower)

Lead negotiations on forbearance and restructuring terms. Implement operational turnaround plan to stabilize cash flow. Communicate transparently with stakeholders. Evaluate strategic alternatives including asset sales and bankruptcy.

Example task: Buy term loan at 65 cents, build recovery analysis showing 85-95 cent recovery in restructuring, target 30-45% IRR.

Career Overview

Compensation & Work-Life

Role	Compensation Range	Hours/Week	Travel
Leveraged Finance	Analyst: $150-200k VP: $350-600k MD: $800k-2M+	60-80 hrs Low balance	Moderate
Syndication	Analyst: $150-200k VP: $300-500k MD: $700k-1.5M	50-70 hrs Moderate	Low
Credit (BSL/HY)	Analyst: $150-250k VP: $300-600k PM: $500k-2M+	50-60 hrs Good balance	Low-Moderate
Distressed Credit	Analyst: $150-250k VP: $350-700k PM: $600k-3M+	55-70 hrs Moderate	Moderate
Direct Lending	Analyst: $130-180k VP: $250-450k Partner: $500k-2M+	50-65 hrs Good balance	High
Restructuring	Analyst: $150-200k VP: $350-600k MD: $800k-2M+	60-90 hrs Very low	High

Career Overview

Corporate & Supporting Roles

Role	Compensation Range	Hours/Week	Travel
Corporate Treasury	Analyst: $70-110k Director: $150-250k Treasurer: $300-700k+	45-55 hrs Excellent	Low
PE Portfolio Finance	Analyst: $100-140k VP: $180-300k CFO: $300-600k+	50-60 hrs Good balance	Moderate
Credit Risk	Analyst: $80-120k Manager: $130-200k CRO: $300-500k	45-55 hrs Excellent	Low
Loan Operations	Analyst: $60-90k Manager: $100-150k Director: $150-250k	40-50 hrs Excellent	Very low
Rating Agencies	Analyst: $70-100k VP: $150-250k Senior Dir: $250-400k	45-55 hrs Excellent	Moderate
Legal - Debt Finance	Associate: $200-350k Partner: $500k-2M+	50-70 hrs Moderate	Low-Moderate

Sources: Wall Street Oasis compensation databases, H1B salary data, industry surveys (2024-2025). Compensation includes base + bonus and varies by firm size and performance.