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April 30, 2024
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-Walk me through a DCF -Why Credit / Banking? -What would you use to determine leverage? -Walk me through the three financial statements and tell me how they relate -What are the three types of valuation techniques and when would you use each -Know how you might be able to mitigate particular risks
....I highly doubt they would expect you to know all of these, but just in case, these are the most difficult I could think of. You can find great answers to these on here and on the web. Good luck, hope you do well!
Ok thanks! Just to be clear, this is for a lending position, not a research/s&t position. Does that change anything?
No it doesn't. I assumed this was lending. Just read up on the basics of credit analysis and I'm sure you'll be fine. Private message me if you need extra help.
Do you mean credit analysis looking at underwritings/loans? Depending on your coverage, you'd want to know the key risks (qualitatively speaking) for companies in a specific sector and what could cause gaps in earnings/cash flow/liquidity. Moody's/S&P reports are a great reference. How to do a DCF is less frequently asked because sector team will be building those, but more importantly, you should know what to look for in a DCF/comp model (ie. cash flows, covenant headroom, loan amortization payments, revenue driver and cost assumptions etc). Also, which variables could you run sensitivity analysis on (ex. interest rates, key assumptions). Know how to identify structural subordination on the debt side and what covenants might be useful in mitigating those. Regulatory risk is also important to know if you'll be covering EM jurisdictions (for collateral enforcement), but this comes with experience and is harder to just read about imo.
Thanks! Yeah this is for underwriting/loans. I just pm'd you with some questions.
So would typical IB prep guides work since they'll be asking about valuation models?
This is for commercial loans.
Questions regarding Credit Analyst Interview (Originally Posted: 03/14/2017)
Hi all, I have an interview coming up in a few days for US Bank as a "Portfolio Review Specialist." I have no relevant experience, period. Junior in college with no prior internships. Economics major.
The job description is listed below, this is all there was explaining the position. My Questions: - With no relevant job experience, how do I spin myself in this interview? - What sort of questions should I be expecting? (technicals) - What type of job is this? (so I can do more research, because at the moment i'm not really sure exactly what this job is.) - Any general advice for me? I really need this internship, I need to crush this interview.
Any help will be greatly appreciated, Thanks!
Job Responsibilities
Credit Review Specialist 1
Entry level Credit Review Specialist responsible for performing routine credit analysis activities. Work is typically performed under direction and guidance. This job is generally responsible for conducting credit analyses, preparing credit reports, and furnishing information in response to credit inquiries. Also assists higher level Credit Review Specialists in the preparation of more complex credit analyses and credit reports
Credit Review Specialist 2
Performs credit analyses and prepares credit reports for less complex credits and portfolios. Work is typically performed under general guidance. This job is generally responsible for conducting credit analyses, preparing credit reports, and furnishing information in response to credit inquiries. Typically works with higher level Credit Review Specialists on analyzing complex credits and portfolio. May conduct industry studies and analyses under the guidance of more senior staff.
Know your Accounting Basics, and all that accounting stuff you'd find on the IB prep packs. Once you know that just chill out, and make them love you.
Interview questions for credit analyst roles that are focused on capital markets (Originally Posted: 09/14/2016)
Hey guys,
I have an upcoming interview next week for a credit analyst role at a bank that is not concentrated in traditional corporate banking products (i.e., terms loans, working capital) but more towards capital markets products. In other words, the bank that I am applying for is more like GS or MS rather than WF or BOA.
Therefore, I need a good understanding of derivatives and capital market products provided from the bank. However, my previous roles only mostly covered financial analysis and underwriting for traditional banking products offered to corporates, not financial institutions or commodity players.
I have a few days left to prepare for the interview. What kind of technical questions should I be expecting? Are there any good references out there on the internet? How should I prepare for a question asking what makes you think you can do well on this role given that you don't have any sufficient experience in dealing with capital market products?
Thank you.
bump
Entry-Level Credit Analyst Interview at a Bond Insurance Company (Originally Posted: 04/08/2014)
Got a first-round phone interview next week. Anybody know what I should expect? For what it's worth, I've only held internships on the equity side. Much thanks in advance.
A few thoughts off hand: - Why credit vs equities? - Thoughts on markets (default rates, Treasuries, etc) - Companies/ Sectors you follow and what you like/dislike - Might ask you your thoughts on a company with xyz traits and what key factors you would want to analyze
Good luck.
crazyb, thanks a lot for the response. Regarding your fourth point (knowing key factors that drive credit prices), any suggestions on how to prepare? (I'm already planning to go through Fabozzi's Handbook of FI Securities this weekend.) It's an entry-level rotational program, so I don't think it'll go that in-depth, but I'd rather err on the side of caution. Thanks again.
You won't need to know what drives prices your best bet is to pull rating reports and see what they talk about and hit on themes and get a sense. Just curious who's it with? BAM? Assured?
Thanks for the suggestion. Sent you a PM.
BAML Credit Analyst Interview? (Originally Posted: 10/06/2014)
Hey guys,
I have a FT credit analyst interview with BAML in their GBAM division in a few weeks. For those of you that have been through the process or are familiar with it, I was wondering how will the interview be? Is it all fit or should I prepare for some technicals as well?
Any feedback/advice is greatly appreciated!
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