Public Finance - Upcoming interview
I have an upcoming interview for a public finance position.. What type of technical questions will they ask? I've looked through the WSO and BIWS technical guide, but nothing specifically address technical questions regarding public finance. So anyone with some insight, can shed some light I would be very grateful..
I saw that before, but I was wondering if I can get a little bit more details..
Did a summer internship in public finance. Never asked anything technical during the interview, literally all fit and why public finance. The reason behind this is that most in public finance know that no one, including interviewees, aim for public finance as their first choice. Also, most of public finance is shrouded in mystery - as I'm sure you've found it's very difficult to find anything out about the industry. This works well for you; the information isn't available so you aren't required to know it.
Read "Bond Buyer." It's the industry standard periodical. If you want a technical book, there is a book called Fundamentals of Municipal Bonds. The publisher is Wiley something.
Know the treasury yields and LIBOR. Know behavioral questions. Be able to talk about one or two significant events in the economy and in the muni world.
Know taxable equivalent yield.
All of that is probably overboard. It will likely be behavioral questions, with a brainteaser possibly. Have a good answer for why public finance.
Thanks guy, erignal I sent you a PM.
One last bump, since the interview is in a few days. Anymore information will be very helpful.
Also, this the modeling software PubFin uses, if you want to become a little familiar:
http://www.dbcinc.com/products.php?arg=finance
^That one tends to be used by most... our group used an older program called Munex, sounds like a nasal decongestant, but functioned the same way.
Hey eriginal did you get the PM I sent you?
Does anyone know of a good place to find information on public finance investment banking? Particularly the interview? I used the search function but didn’t find too much on here. Thank you to anyone who can help out!
mtanner189,
I used to work for a hedge fund that traded a lot of munis, so I talked with a lot of people from the major banks in both the primary (origination) and secondary (S&T) markets for muni bonds.
What I can tell you is that my four rounds of interviewing at the hedge fund were mostly focused on fit. I was never questioned about call provisions, or muni swaps, or how to price an airport revenue bond, etc. They mostly wanted to assess my work ethic, ability to communicate and analyze data, and if I could be pleasant when tired and stressed. That was it. I don’t know of a single undergrad program that goes in depth on public finance and the MPA and MPP programs that offer public finance tracks aren’t adequate preparation in the same way that an MBA in finance prepares you for IBD. The point is that most firms know you will have to be taught about public finance. My industry contacts on both the buy-side and sell-side, with some minor variations, had similar interviews.
If I were you, I would learn about the following topics to make sure that you are prepared for an interview:
•GOs versus revenue bonds -Cal GO 5 of 14 = California general obligation bond paying 5% and maturing in 2014 •Types of revenue bonds at a high level (public power revenue bonds, hospital, water, etc.) •Taxable equivalent •Relationship to treasuries as a percentage •Monoline insurers •TANs, RANs, GANs, and BANs •Call provisions •Local and state government are notoriously bad at providing information to issuing agencies, so you should probably know some of those issues as well •Size of market •Latest league table •The NYT has a section on municipal bonds
Penn has a public finance certificate, so you might find some info on their site. The Kennedy School at Harvard has a good pdf on public finance options
I hope this helps.
By the way, for anyone else who reads this post, people talk about public finance being a path with poor exits. While there is some truth to the fact that you can get pigeon holed, effective networking goes a long way. I was able to land a job in SM PE through networking, although Cerberus will likely never be an option. You could probably talk your way into a job in DCM pre-MBA. Other changes would probably require an MS or MBA, but anything is possible. Just my two cents.
Public Finance IB informational interview? Need some advice! (Originally Posted: 08/05/2016)
I'm at a pretty good non-target in the Midwest; a huge state school in the big ten. I graduate next December, so I'm technically a senior but I'll be recruiting as a junior for SA this upcoming summer. I have a 3.6 GPA, good extra curriculars, and a finance internship at a large manufacturing firm.
Anyways, I've been networking a good amount and trying to line up some kind of internship for the fall. I cold emailed a Public Finance MD at a solid firm (Baird, 5/3, etc.) in my college town area, and asked if there were any internship opportunities at his location. After emailing back and forth a bit, I managed to get a meeting with him before school starts! It's an hour long meeting at his office. I'm excited because PF seems like a really interesting industry.
So now that I've given you the rundown, here are my questions:
Do you think this is an informational interview or more of a legit interview?
What should I do to prepare? What could I be asked? I've been reading Rosenbaum & Pearl and BIWS 400 question guide throughout the summer, but I don't feel prepared for a Public Finance interview since it's different from traditional IB.
Can anyone suggest some good talking points for Public Finance?
Would this look good for SA applications at MM firms in Chicago (like Blair, Baird, HL, Lincoln)? Realistically, I highly doubt I have a shot at any BBs, so these are the firms I'm planning on targeting. My ultimate goal is to get a SA at one of these firms, and turn it into a FT offer.
Thank you so much for your time, any and all advice is welcomed!
Treat every interview like a real interview.
You'll likely be asked why pub fin vs corp fin... In pub fin you will be raising funds for municipal projects (roads, schools, stadiums, developments, etc) which you can see being built in your community. In corp fin the projects are less tangible - raising debt and equity for a publicly traded company or negotiating mergers and acquisitions.
Ask how the low rate environment is affecting his deal flow and where he sees rates going. I'd presume he's been busy (low rate environments are constructive for pub fin) so you can ask about recent deals.
Muni bonds are tax exempt so know how to calculate tax-exempt equiv yield or at least be comfortable with the concept. Know the difference between GO (general obligation) bonds and revenue bonds. Get comfortable with basic fixed income concepts.
It's imperative that you demonstrate an understanding of the difference between pub fin vs corp fin and have a great answer as to WHY you've chosen to pursue pub fin (tangible projects in community, interest in public policy etc)
Thanks for your response.
Could you explain why a low rate environment is constructive for public finance? Is it because lower rates mean less interest being paid out to bondholders, meaning cheaper financing for the issuer?
Not entirely true but for the purpose of a SA position that'll do
Do you say that because of low investment rates on escrows/project funds/etc?
Feel free to PM me
PubFin First Round (Originally Posted: 10/01/2017)
I've got a first round with a BB PubFin group coming up and would love to hear if any of you have gone through the same thing. I'm still trying to familiarize myself with the group, but have any of you worked at a BB PubFin group? If so, what was your experience there and what can I expect from a first round virtual interview?
Even if you haven't worked in the group but have gone through the interview process, I would still appreciate hearing your experience.
Thanks a lot.
Hey TheKid1, I'm the WSO Monkey Bot...do any of these help:
More suggestions...
I hope those threads give you a bit more insight.
Meeting A BB Group Head for Coffee (PubFin) (Originally Posted: 10/24/2012)
Hey Guys,
Non-Target, Recent Grad here looking for some advice on meeting with an alum who is a group head in public finance. I have a few general questions:
1) Attire:Right now I'm going suit, open collar. Honestly, I feel a little silly wearing a suit to go get a coffee, but he'll most certainly be in business formal so I have to look similar. Stupid Idea to ditch the tie? I may bring one with me just in case
2) PubFin Q's: I've been searching this forum and M&I and haven't found too much about the group in Pubfin this guy works in. It looks like he does something with originating derivatives for public organizations, but his linkedin is a bit ambiguous. If anyone has any insight to what this may be or where I should be looking to educate myself a bit more on the topic, please let me know
3) Also, is there anything similar to dealbook for public finance deals? I'd like to try and find some recent deals that his bank has been involved with. Is Bond Buyer the only option?
Also, if you have any insight or advice you want to give, I'm all ears.
Thanks a lot I really appreciate it
would consider this website: http://www.bondbuyer.com/
Don't think you need a tie - but it wouldn't hurt to wear one.
@ucmaroon- Yes, I've looked at Bond Buyer. Unfortunately, it's not a free site and since I don't have what Bond Buyer considers a valid work e-mail address, I can't even get a free trial. Thanks for the input though
doh! hmm, i will do some digging and see if i can find anything else
Bump. Got a hold of Bond Buyer, thanks guys
Public Finance Firm ($100bil AUM) Asset Management Interview? (Originally Posted: 07/01/2014)
So I have any interview for a summer intern position coming up with pretty large ($100bil AUM) advisory firm specializing in public finance. I've been told I'd be in the Asset Management division, but not the specific group (they're getting back to me on that).
Just wondering what WSO would suggest I look at specifically when preparing for this interview? In other words, what else should I study besides the general AM type interview questions? How will the fact that I'm dealing with municipalities change what I need to know?
Any help or insight is greatly appreciated!!
Aut nostrum tempore omnis mollitia consequatur beatae qui sint. Aut et officiis sed voluptatem atque. Provident excepturi labore vero officiis qui reiciendis. Quasi excepturi suscipit sit id eius soluta.
Consectetur et ducimus nemo. Eius ut quam velit est qui. Ab commodi explicabo earum quaerat alias quidem eos. Molestias hic omnis exercitationem doloremque repellat. Debitis rem sunt qui aperiam aut.
Minus ex odit in voluptatibus architecto numquam eum quis. Temporibus id id impedit. Ipsam atque ut sunt vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Aspernatur ut earum adipisci hic aut sit. Voluptatem ipsam amet et omnis necessitatibus sunt. Minus numquam rerum eligendi voluptas dolorem id.
Molestias fuga veniam eius ab suscipit. Commodi possimus qui nobis voluptatem voluptas. Ipsa dolor voluptas voluptatem fuga ut in et deleniti. Ipsa rem quia itaque saepe et omnis.