Equity Capital Markets interview
I am interviewing on campus with a BB firm for ECM. What types of technical questions should I expect?
I am interviewing on campus with a BB firm for ECM. What types of technical questions should I expect?
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Is this for FT? Anyways, make sure you know general banking techs and fits (you can see BIWS for that or ibankingfaq is good as well). Also, you will have to show passion for the ECM. If this is FT, you may have to pitch a stock, macro trends; check out the major indicies, know where they are trading, and not sure which sector this bank may have emphasis on, maybe all who knows, but def knows how certain sectors are performing right now...also read up on current events and what may happen in the near future. Make sure you know recen/past IPO or other equity offerings, past deals in general. Make sure you know, yourself, what the ECM group does and why you wanna be a part of it at a BB. It assists in pricing, allocating, marketing, and executing equity offerings. And most of the time, they dont do THAT much financial modeling, since most of it is done by the specific industry group.
Is there a specific division you are interviewing for, within ECM?
This is for a summer analyst position - no specific division. I've been preparing for S&T interviews also so I'm familiar with a lot of the markets based questions I may be asked, but what type of banking questions should I anticipate for ECM?
ECM Interview Questions for SA (Originally Posted: 09/15/2015)
What questions would I expect for ECM interview for a summer analyst position? Basic banking interview questions? Thanks in advance
I went through general capital market interviews and will be working for a MM capital market group out of school...here's my experience:
You can expect the basic investment banking question as well as basic sales and trading. It kind of reflects the unique position of ecm between st and ib. I think beyond the basics, every single interview wants to know you're up to date in current events. Even going beyond being up to date by understanding the events that led up to today. Have an opinion on everything and an well thought out reason for why you think markets will go in a specific direction
Which most common stock indices do you know? Why is the performance of German DAX not comparable to the S&P 500? What are reasons for an entrepreneur to sell its company via IPO? Difference Spin-Off - IPO What is a dual track Difference Common vs Preferred Stock A company with high leveral should be IPOd. Spin Off and IPO are possible - what is the better solution? What is a stock split and why do companies use it? Which title and functions have banks in an IPO process? Who do you sell / advertise an IPO? What are primary vs. secondary issues? Why are companies that do the IPO almost always underprices? What is causing this IPO discount? Assuming you are an ECM analyst and you have to do a first draft pitch book - which chapters would you include? A company with 400m shares outstanding issues 100m of new shares - all shares have voting rights. What is the dilution? How do you calculate the final price of the IPO? Why do you need a prospectus with an IPO? What are possible reasons to issue preferred shares rather common stock?
Thats what came in my mind.
Thanks for the responses. @ifinno, are these questions you would expect to be asked in an interview for a summer analysts(someone still in undergrad)?
ECM Interview - First Ever BB Interview! (Originally Posted: 04/16/2012)
I have a few telephone interviews next week (30 ish mins each) at a top BB.
I have only ever researched/interned in M&A and I'm not sure how they selected me. Nevertheless, I have nothing else lined up and want to smack these 3 interviews which will then get me the intern role.
Does anyone know how I can prepare? I am clueless what technicals etc to prepare for (if different from M&A e.g. valuation techniques, enterprise/equity value etc) and what I should expect. Any ideas? Any good sources? Anything I need to 'cram in'... haha
One interview is likely to be competency/why the location (I applied abroad)/why the BB type stuff which I should be okay with as I have solid answers prepared. The other two are likely to be general ECM related ques? Technical ques? I really don't know.....
Any help is greatly appreciated.
Pitching a stock is a big thing. Know the basics of converts and their relationship to M&A in financing. Basic options knowledge. Why do an IPO? How does an IPO work? Basic accounting may come up. Tell me a story. Teamwork is big since you will set on desks with everyone. Why ECM... Know about the market and economy, have a real opinion Know what the banks numbers are.
I went for a superday of interviews for an ECM position at a top BB for a summer analyst position. From what I remember, the interviews were VERY behavioral. However, I did get asked a stock pitch question - probably because I had an ER internship. They focused heavily on my past internship experience, being able to explain each experience in-depth, and detailing risks to my investment thesis. Knowing exactly what the role of ECM is important (sit on top of Chinese wall, etc).
Hope this helps.
Also - I came from a liberal arts college / not a heavily technical background, so that might also have explained why I was not grilled on technical knowledge. ECM interviews, though, are less technical than traditional ibd interviews.
Good luck.
BB are still recruiting?
I interviewed for an ECM position with a BB a few years back. I was asked the regular accounting questions and valuation questions you can expect in a cap markets interview. Also, I was asked my view on the IPO market, and equity markets in general.
WTF, HOW ARE BB STILL RECRUITING?!
do you mind disclosing the bank/location at the least, or PM it to me? i am shocked BBs are still looking, assuming this isnt a troll post, which i dont think it is.
what the fuck..
This is not a troll post. I applied ages ago but the analyst in charge of my app (I was invited to interview ages ago) kept going out of town so I was never interviewed. An intern actually withdrew their offer, they had my resume on file, so I got lucky. Hence Im working as hard as possible to score this.
View on IPO market - anywhere I can 'copy' mine from? And Im not being interviewed in my home country - should I know THEIR equity market developments or my home countries? How do I find this?
I have BIWS - that covers all the technicals I need right?
Anyone know a good guide to pitching a stock just incase I'm asked that? I don't think BIWS have anything like that...
Thanks!
btw - I knew someone at my university who got 0 job offers and then got a call from GS in June to intern with them because someone dropped out. he's now a full time analyst there. its all possible :)
Analyst Handbook: http://www.box.com/s/95be1f229c51661b9cd9. (Page 8-9)
Thanks!
view on IPO market and overall markets? any ideas?
It looks like the IPO Market is thawing...Annie's Foods, Facebook, ExactTarget, Vocera - there seem to be a lot of VC-backed IPOs. Does anybody else have ideas? Sorry I couldn't help much.
There was GroupOn also right? Things seem to have picked up in 2012.
Some questions...
1) Know about your home market, the market your being interviewed with, and generally about the global market 2) Know your resume, be able to give competency examples for fit purposes 3) Technicals - same as M&A prep except will they ask more bout the IPO process etc? or just the typical accounting, how do you value a company questions?
Finally - suppose you get an offer for ECM - how can you swap to a coverage group or something else? Is this even possible?
Thanks!
how did this work out big dog?
Preparing for ECM interview (Lazard) (Originally Posted: 02/26/2010)
Does anyone know anything about Lazard ECM in NY or how to go about preparing for an ECM interview? Thanks
Which part of the ECM? S&T?
What type of position?
When's the interview?
Details...
Definitely S&T, Lazard doesn't do it. Other than that, I have no clue either...
ECM at Lazy is a very small. everyone is top notch. be aware that Lazy wont do any underwriting cause of the structure of the firm. you should learn how they work with the Alternative Capital Finance team (these guys mostly do RDs - registered directs- and that kinda stuff). the ECM team will never take left book cause of the structure of the firm. they do a lot of secondary offerings. know group just had a record revenue year. be aware of how the relationship with LCM
Equity Capital Markets final round interview? (Originally Posted: 03/23/2014)
Any advice on what to expect from a technical standpoint? I know that it's more about interpreting models than making them, so I am not sure how in depth the technical questions will go. I couldn't find very specific answers anywhere. Thank you for any advice
bump
BB ECM Interview (Originally Posted: 12/15/2014)
I have a phone screen/first round coming up with for a BB ECM SA position. Guessing that fit will be important here, but what other sorts of questions will be asked? What kind of technicals should one prepare for?
NY or London or Frankfurt or _?
NYC
bump?
ECM Interviews (Originally Posted: 01/09/2009)
I have an SA ECM interview coming up with a JPM/Citi/BofA and am wondering what to expect in terms of technical questions. Will it be a mix of accounting and markets questions? brainteasers?
WSO just released a technical interview guide... that may be of help. Just click on the guide tab up top.
NEVER lose your BlackBerry www.conveniencesoftware.com
This would be for US. It is a one round interview (From a nontarget), so I am assuming basically a superday format.
ECM Interview (Originally Posted: 04/26/2012)
I have an interview coming up for an Analyst position and was wondering if anyone that has gone through the process can shed some light on the process? There's not much useful info on WSO regarding this group. M&I has a pretty comprehensive article on ECM interviews, but I am interested to see if people have advice on specific questions that I might be asked and how the process might be different from regular ibd interviews. Thanks!
read up on convertibles, mandatory convertibles, exchangeables... i have this little handbook that my boss once gave to me from his time at salomon brothers. not sure if i still have the pdf. if so, i'll send it to you.
That would be great! Thanks
congrats by the way. make sure you nail it
I'll definitely spend a lot of time preparing. I've mostly had ibd interviews so this is completely new stuff. Right now, I'm just trying to find some good sources where I can read up on this stuff.
anyone?
if its not too late shoot over a linkedin message to someone working in convertibles. you'll be surprised.. people love to help. good luck.
Bump this thread.
I know there has to be some folks here that have some better advice than what's given.
Regards
download the "Hull: options, futures and other derivatives" pdf and get comfortable with the options lingo. --- make sure you understand the basics (options and the greeks) and read the pages on convertibles --- it is absolutely essential that you know what a convertible, mandatory, exchangeable consists of. --- read a couple of term sheets (including conditions) and try to understand how all that stuff on there is actually put into practice by using different kinds of options etc.
download the "brealey: principles of corporate finance" pdf and read the chapter on convertibles. --- the key is to understand why a company should issue convertible debt? when should they do it? what are the pros and cons? what can go wrong?
read everything there is online. i know there isn't a lot out there
Would appreciate more input, especially from people in the space.
those guys ar a tough interview so be prepared.
deleted
I can use some help here guys...anyone?
Equity Capital Markets (ECM) (Originally Posted: 10/11/2009)
I have a finance interview w/a BB in its ECM group. I have an idea of what ECM does but wanted to hear from someone who is more familiar w/ ECM about what analysts/associates do on a daily basis. Also, what interview questions can I expect? What skills should I stress during the interview? And most importantly, what are motivations for someone to go into ECM rather than say an industry group or m&a in banking?
Thanks in advance for the help!
Do a search, this was covered a few days ago.
HELP: ECM interview for a position in NYC (Originally Posted: 05/21/2014)
Hello fellow bankers,
I have an interview next week for a position in NYC as an Investment Banking Analyst (focused both on M&A and ECM).
I'll meet 3 people and one of them is a VP in ECM. I have no background in ECM and I've never had an ECM itw either (but I'm currently working in M&A in Paris) and a few tips would be highly appreciated.
I had a look at the previous topics but it didn't help much.
Thanks!
I would think that you should probably generate an opinion on the equity market. Definitely know where the big indexes stand at(S&P, Dow, NASDAQ). Have an opinion on where you think they are going and be able to explain why. Probably know some recent IPOs specifically companies that the bank has worked on.
Thanks for your answer!
It's somehow difficult to get a good opinion of what they do or did in North America as this bank is more active in Europe... But I'll definitely check on my free time (i.e during night hours !!).
Thanks again
ECM interview - help (Originally Posted: 01/13/2012)
Guys,
I need some help with regard to an upcoming interview. Am meeting with some MDs and I was referred to them by someone from a firm that I had interned in before. So, I def don't wanna come across like a dick!
Firstly, one of the MDs is within ECM. I have a feeling that there's going to be alot of ECM related questions (the position might be within ECM - they are kinda being vague abt it right now). I haven't been interviewed specifically for capital markets before, so was wondering what I should expect and prepare for?
Also, I have quite a soft voice and supposedly that has a negative impact on my "presence". Any idea as to what to do abt that? Not reli the fratty type of person.
Thanks!
I would expect all the standard IB questions, and in addition to that have an understanding of what's been going on in the equity markets which should be pretty obvious. Beyond that I would also know what's been going on in the IPO market and also what deals that firm has done in the past few months on the equity side.
Hope that helps
ECM lateral interview with EB (Originally Posted: 12/22/2014)
First year analyst in coverage, looking to lateral into a EB ECM team. What questions are typically asked?
Bump!! This interview is for the morning. Any help would be greatly appreciated
Don't trust Ken Murray.
Why are you moving from coverage to ECM? That's taking a step back...
Step back how ?
EB ECM I'm guessing for EVR?
I don't know if lifestyle > skillsets you pick up in coverage in this case. Especially if this is for a boutique
Agreed, not everything's about the buyside, but ECM can be relevant for HF experience. ECM also has a better work-life balance than most coverage groups. Ask about recent offerings and how the firm advised a structure or something like that. Insight on recent transaction experience is always a good indicator of interest.
It's my view that you learn much more and relevant corporate finance knowledge in coverage. TNA is absolutely correct that life is more than buyside, but ECM will limit you rather than opening new doors for future opportunities whether it's buyside, corp dev, or startup.
I mean I get this, but what if you absolutely hate M&A. Like ECM is a lot different in both work and time in the office than say M&A.
I personally would go DCM over ECM. I feel like there are more options on the DCM route while maintaining a livable standard of living if you did decide to stay in banking. Either are going to be fine though. I just think WSO gets a little clouded when they think about these exit opportunities. Unless you have an amazing pedigree you are going to be working at a MM PE shop. These vary in pay, culture, opportunity and life span. Just from the recent posts on here recently regarding pay and opportunity you can see that PE isn't a magical end of the rainbow.
Just food for thought (not directed at you Whiskey, just in general)
EB ECM = minor co-manager roles on deals all year long, no? Thought EB capital markets were basically just a backdoor way for the bank to get paid on M&A deals that never closed.
I kind of agree with @"Whiskey5". Banking is always going to suck; might as well at least get the most marketable experience you can get, even if buyside isn't your goal.
Interviewed by ECM? (Originally Posted: 12/25/2009)
I'm interviewing for SA BB IBD and for a 2nd round I found out one of my interviewers is from ECM.
I'm ready for IBD technicals but should I expect ECM related things? Tell me about an IPO we did, ECM technical questions??
Hi gekko2,
Know - the main indices and not only American ones to show your interest (CAC40 in France, FTSE, DAX etc for Europe and maybe Nikkei and Hang Seng in HK) - sector indices : DJ Stoxx, DJ Eurostoxx, DJS 600 etc - the recent IPOs in your country (USA ? then Vitacost, Opentable for example - yes both are e-retail players but I work on this sector at the moment - ), - the pipeline (take the latest SEC filing (Dec 11th I think) with the pricing dates) - maybe know how long it takes before launching an IPO (find a calendar of a transaction), just to have an idea
Because it is ECM, don't only focus on IPOs, but know how a capital increase works (dillution of the shareholder structure etc but I can't tell much about that since here in France, we generally do rights issues, so capital increase with rights to give to shareholders the privilege to buy a specified number of new shares from the firm at a specified price within a specified time)
Well it should be enough since it is not an ECM interview ! Good luck ;)
They won't ask you all this for a SA position. I've never had anyone on my desk ask this
ok, I don't know the specific questions for a SA position, but these are examples of questions I was asked for my 6-month internship
Wow thanks for the insight Scratchy. I mean I'm interviewing for IBD so I hope I don't get asked all that.
I had an ECM guy interview me for IBD and he didn't ask anything like whats above. In all liklehood they're only gonna ask you technical questions you SHOULD know based on your resume not random stuff out of the blue. I had superdays with MS and GS for SA and every technical question was some variation of: "So I see you've had accounting, why don't you tell me...." or "So you've worked with LBO models, explain...".
ECM is prob insecure and probalby spend the entire time trying to tell u why they are as good as IBD. Or they will ask u y u like ECM to make themselves feel better. DOnt wry about technicals.
lol @ fordhammaster sounds like you're a little insecure
While ECM is a selective group (it's different from classic corp fin), many of the people either transffered from regular IBD or were recruited into IBD and then chose to join / were put in IBD ... therefore most of their technicals will be similar to IBD.
No one will quiz you on equity financing specifics just like a nat res banker won't quiz you on E&P specific questions.
p.s - Fordham, why are you so hard on ECM bankers? I read you're a Junior ... which means you've had no substantive experience in corporate finance, or capital markets. I mean I know lots of people who don't want to be in it (for valid reasons), lots of people who didn't want to be in it without really understanding what the job was but now love it once they started, and lots of people who've always liked it ....
This is a word of suggestion to all the prospective analysts on this board. 1) You will never know if you get put into ECM/DCM so I suggest you keep an open mind 2) ECM has its own merits but of course if you want straight to P/E etc, then yeah ECM is a bad choice for you
but at the end of the day I think its silly to say I will pigeonhole myself to one role because in 2 years i'm going to quit and go somewhere else ... considering you don't know what you're passing up on and you don't know what you're really gunning for
as an FYI, if you look around the street today, many successful people were ex-ecm bankers and many ecm bankers were ex-corporate finance bankers. (i.e - J Michael Evans, 3rd man down from Blankfein at GS - ECM banker, in fact 2 of the vice chairmen at GS were ECM guys ... with majority of the remaining being traders). Lots of ECM guys also end up running equity sales or vice versa (i.e head of DB's ecm ran equity sales before).
my 2 cents - no need to flame me.
Merry Christmas to all
I've never knew Blankfein was ECM banker, thought he started his career at commodities trading dept
Superday questions (Originally Posted: 12/04/2013)
Hello. I just got past the 2nd round of interviews for a firm and the 2nd round was a fairly extensive phone interview that was about 75% fit and 25% technical. I was wondering what they will even ask me during the superday that is in person. what kind of questions will be asked? will it be about the same as my 2nd round interview? The position is for a convertible securities group (technical ECM).
Same questions, different (and more) people.
Should be a similar mix, most likely more of an emphasis on fit, they use the first rounds as a way to screen qualified candidates for technical ability.
was wondering this as well..
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