Investment Analyst Interview - Other
Anonymous interview candidate in Boston
Interviewed:
November
2012
Date Submitted:
Dec 12, 2013
Outcome
No Offer
Interview Source
Recruiter
Length of Process
1-2 months
Application
Phone Interview
1 on 1 Interview
Group Interview
Presentation
Skills Test
Interview
First round was typical background questions, plus a credit investment idea pitch. I pitched a long distressed credit idea. I talked for 2-3 minutes, and they asked me questions for another 10-15 minutes. Didn't probe too deep, but covered what I knew about the ongoing business, cap structure,
Next round was case study, which I got about two weeks to work on. Did a full 3 statement model and powerpoint presentation. Presented the case to the two PM's and senior analyst. Questions during the presentation made sure I understood the business, industry dynamics (e.g. industry capacity vs. demand), and especially the credit agreements (and accompanying amendments) and the relationships between all the tranches of debt. Valuation was very important as well, along with an understanding of yield, duration, etc. I wouldn't say the interview was very technical, but you had to understand credit to be able to make a good investment recommendation. They seemed impressed that I spoke to management, so be sure to do that.
After that was the 1-on-1 fit interview. Good guys.
Next round was case study, which I got about two weeks to work on. Did a full 3 statement model and powerpoint presentation. Presented the case to the two PM's and senior analyst. Questions during the presentation made sure I understood the business, industry dynamics (e.g. industry capacity vs. demand), and especially the credit agreements (and accompanying amendments) and the relationships between all the tranches of debt. Valuation was very important as well, along with an understanding of yield, duration, etc. I wouldn't say the interview was very technical, but you had to understand credit to be able to make a good investment recommendation. They seemed impressed that I spoke to management, so be sure to do that.
After that was the 1-on-1 fit interview. Good guys.
Interview Questions
Make sure you know your bond math cold. for example:
5% bond, current price 1150, 15 years to m, what's the YTM?
total premium over par = 150
divided over 15 years = 10 (amount lost per year if held till maturity)
yearly real interest (1000*5% = 50) - 10 [yearly loss above par]
= real yearly return of 40
/ average price of bond (average(1150,100) = 1075)
40/1075 = 3.72%
make sure you know how to calculate each of the above variables if it's the unknown in the problem
5% bond, current price 1150, 15 years to m, what's the YTM?
total premium over par = 150
divided over 15 years = 10 (amount lost per year if held till maturity)
yearly real interest (1000*5% = 50) - 10 [yearly loss above par]
= real yearly return of 40
/ average price of bond (average(1150,100) = 1075)
40/1075 = 3.72%
make sure you know how to calculate each of the above variables if it's the unknown in the problem
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