Debt Specialist

Roles and responsibilities

1. Debt Portfolio Analysis

• Assessing Debt Structure: Review and analyze the structure of debt portfolios, including short-term and long-term debt, bonds, loans, credit lines, and other liabilities.
• Debt Servicing Costs: Evaluate the cost of servicing debt, including interest rates, repayment schedules, and associated financial obligations.
• Risk Assessment: Analyze the risk level of different debt securities and investments, considering market conditions, interest rates, and issuer creditworthiness.

2. Credit Risk Analysis

• Creditworthiness Evaluation: Conduct in-depth analyses of borrowers’ creditworthiness by reviewing financial statements, credit reports, market conditions, and industry performance.
• Credit Rating Monitoring: Monitor and assess the credit ratings of entities with outstanding debt. This may involve analyzing macroeconomic trends and sector-specific risks.
• Default Risk Monitoring: Identify and assess potential default risks for both corporate and sovereign debt, helping stakeholders make informed investment and risk mitigation decisions.

3. Debt Restructuring and Refinancing

• Restructuring Plans: Assist in debt restructuring by evaluating different approaches, such as renegotiating terms, extending maturities, reducing principal, or exchanging debt for equity.
• Refinancing Strategies: Evaluate opportunities for refinancing debt at more favorable terms, including lower interest rates, longer repayment periods, or other restructuring methods to reduce financial strain.
• Stakeholder Communication: Collaborate with creditors, bondholders, and other stakeholders to negotiate debt terms and help resolve any financial distress issues.

4. Financial Modeling and Reporting

• Debt Projections and Models: Develop and maintain financial models that project the future impact of debt on a company’s balance sheet, cash flow, and profitability. This may include forecasting interest expenses, principal payments, and other related metrics.
• Performance Monitoring: Track the performance of debt investments, including yields, coupon payments, and overall risk, and generate reports that inform decision-making.
• Financial Reporting: Provide regular reports on debt-related metrics to senior management, investors, or clients, summarizing key findings and offering actionable insights.

5. Debt Investment Analysis

• Bond and Loan Evaluation: Analyze different types of debt securities, including government bonds, corporate bonds, syndicated loans, or mortgage-backed securities, to assess their risk-reward profile.
• Market Conditions Assessment: Monitor and analyze financial markets and macroeconomic conditions (e.g., interest rates, inflation, or GDP growth) that can impact debt instruments and borrowing costs.
• Investment Strategy Support: Support investment decisions by providing recommendations based on debt characteristics and financial performance metrics.

6. Compliance and Regulatory Oversight

• Regulatory Compliance: Ensure debt strategies and investments comply with regulatory requirements, such as the Securities and Exchange Commission (SEC) rules, the Dodd-Frank Act, or local regulations on debt issuance and financial reporting.
• Debt Covenants: Monitor compliance with debt covenants, ensuring borrowers meet their financial obligations and avoid default triggers.
• Debt Issuance Processes: Assist in the preparation of documents and analysis related to debt issuance, ensuring legal and regulatory requirements are met.

7. Debt Collection and Recovery (in some roles)

• Debt Recovery Strategies: In some roles, debt analysts may work on debt collection strategies for distressed or defaulted debt, helping to recover assets for creditors.
• Negotiation: Engage in negotiations with borrowers to settle debts or work out payment plans that allow for partial or full repayment over time.

Desired candidate profile

Analyzing debt instruments, assessing credit risk, and providing insights to help manage the organization's debt portfolio effectively. This role plays a critical part in forecasting financial obligations and supporting strategic decision-making regarding debt issuance timing and management.

Working Experience

• Minimum of 7-10 years of experience in finance, investment banking, analysis, treasury and debt management roles with a focus on debt management and financing.
• Strong experience and understanding of capital markets, debt issuance with focus on analyst skills focused on fixed income.

Qualifications

• Bachelor’s and above degree in Finance, Accounting, Economics, Business Administration.

Other Certifications

• Professional certifications such as FRM (Financial Risk Manager), or similar qualifications, are advantageous.

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