So I have a first round phone interview coming up with BB research. I have no finance background. I'm a hard science major, did science research in the past. What kind of questions should I expect? I'm worried that I'll fuck up the technicals.
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It is covered extensively elsewhere... however since I'm a bit bored and feel like being of help, you can expect a fair amount of fit questions as the firm will want to see that you have a sincere interest in finance and more specifically in research. They will ask you your opinion on the economy/market, behavioral/fit questions (why xyz firm, why research, describe a time when you have...) and will most likely ask you to pitch a stock. There is a good link on here on how to approach the "pitch me a stock question" written by WSO user Jorge (there's some love for you Jorge that I have linked for you below). Since I did the majority of the legwork and provided a link for you, an SB would be lovely...
//www.wallstreetoasis.com/blog/the-stockpicker%E2%80%99s-checklist
Non-finance major student.. How to prepare for interviews? (Originally Posted: 07/27/2014)
Hi,
I am a rising junior student at a semi/non-target school studying Mathematical Economics. I am interested in the Capital Markets and Sales and Trading divisions..
Since I have 0 finance background, I reall have no knowledge in the industry. How am I supposed to be preparing for the interviews? I've been studying the WSO Technical guide, but I don't think it's enough. What if the future interviewers ask me "how to hedge gamma" or "how do I calculate the convexity of a bond" or whatever super technical stuff?
Would they still ask me super technical questions given my non-finance background? Any strategies please!!!! VERY APPRECIATED!!!
You have made 24... TWENTY FOUR COUNT EM'!!!! Posts on this subject.
At this point, if you still haven't figured out what you need to do or are still for some reason looking for the magical "study strategy" to make it through an interview or break in. I don't know what anyone else is going to tell you for the 24th time. It's not like school, welcome to the real world. Prep for your interviews, work on your social skills and hope for the best like everyone else in the history of everywhere.
LOL THANKS. The last time you said" THIS IS YOUR 30TH POST" but now it's the 24th? lol but thanks for the advice.
Damn, @ArcherVice kudos on the excellent due diligence of the OP haha
Not to be a contrarian, but... I've had two phone interviews exactly like this. I have a Ph.D. and no finance experience (outside of the CFA curriculum) and was expecting fit questions. I got some of those, but also quite a few about modeling that I completely flubbed and a request for a stock pitch.
I'd say prepare for it all.
Interview Topics for non-finance undergrads (Originally Posted: 06/08/2012)
Hi guys,
I go to a top three school (Princeton) that does not have a business/finance department. When I get interviewed for ibanking internships (sophomore or junior year), what kind of questions should I expect? Will they ask me technical questions, even though I have no formal teaching on the subject?
Would the answer to my question be different if I'm involved in a finance club at school, or if I decide to get an "Undergraduate Certificate in Finance," which is kind of a joke because it doesn't have much to do with finance (you have to take a certain group of math, econ, and stat classes).
Thanks in advance!
You will get-
Oh, you can do book value, market comps, transaction comps or do a DCF
The PV of a project or a company is equal to the sum of the discounted future cashflows, you discount future cashflows by the WACC
The WACC is the weighted average cost of capital, it is composed of a weighted average of the cost of equity and debt. The cost of debt is given by the risk of the company, which is often approximated by its credit rating. The cost of equity is often given by the CAPM.
No, the CAPM is the Capital Asset Pricing Model which gives you the cost of equity which is the risk free rate plus the beta of the stock times the market premium for the stock, which is the return of the market minus the risk free rate.
Well basically, the beta of the stock measures how the stock moves with the rest of the market. More specifically, it equals the covariance of the stock with the market as a whole divided by the variance of the entire market.
It is a script. It isn't even important that you memorised the script because you need to learn it. There is training for that. It is just a litmus test for who is serious about finance and who is a squishy major with a bit of career angst.
The WSO Technical and Behavioral Interview guides will do wonders for you if you plan on interviewing for IBD. As far clubs, anything finance related will look good on a resume and will give you something to talk about in an interview.
Also, you come off as a twat bragging so bluntly about Princeton. Just so you know. Confidence should speak for itself. And if you need to speak for it, at least be clever/funny.
We can still be friends- I don't mean to bicker.
I think liberal arts students actually have less of a hurdle to clear when it comes to technicals in interviews. Obviously, that may vary on a firm to firm basis, but generally (and this comes purely from a sample size as small as my acquaintances, kids I met when I was first interviewing, some speakers at various banks describing the recruiting process, and people on the desk I first joined) there's a lower standard in terms of industry knowledge.
It's more about following the mantra "smart is smart," where they just look for a modicum of intelligence and likability and expect you to be able to pick the rest up on the job. After all (and I say this as a finance major), WACC, CAPM, etc.), but other than that, getting involved in a couple related extracurriculars on campus ought to put you in fine position during recruiting. Some of my best friends from my summer were from Princeton and Dartmouth and they all described breezing through the interviews.
If you really feel like covering the bases, check in with your career center. You probably have free access to the Vault guides and the Wetfeet series, and if money is no object, then pay for the BIWS guide (better than WSO in my opinion -- the most comprehensive, straightforward; most bang for the buck) since it incorporates both behaviorals and technicals.
I should specify that these were last summer. My impression is that people want new employees to hit the ground running so financial modeling experience is desired, but it's also probably a case by case basis.
Non-Finance Undergrad; Technical Interview Questions? (Originally Posted: 10/08/2012)
Hello IB Forum,
I am currently considering applying for IB Summer Internships since I more than likely missed the Consulting deadlines. I come from a non-target with an engineering background, but I have gotten into HBS' 2+2 program. My questions is, if I apply for an analyst Summer position, will they throw a lot of technical finance related questions at me? A quick google search yields varying results. Some sites say that they don't ask technical questions while others say that I need to be extremely prepared.
If anyone is wondering, I am motivated to enter a new IB because I am truly curious about the industry. I am leaning towards an internship because I believe it would be a perfect situation to find out if I am right for IB and vice versa.
You should prepare for technical questions regardless. The WSO Technical interview guide is cheap and does a pretty good job at providing a succinct cursory guide to the types of technical questions you might get.
You should be okay if you can answer these:
Walk me through a DCF.
What is beta?
Why is cost of debt cheaper than cost of equity?
What are the three ways to value a company?
Walk me through a comparable companies analysis.
What factors come into play when contemplating an M&A, and what determines Accretion and Dilution?
Company “A” is acquiring company “B”… Company “B” has higher P/E ratio than “A”… (Dilutive or Accretive)?
Company A issues 1MM shares and has earnings of $10MM. (EPS of $10). Company A buys Company B by issuing 500k more shares for an additional $2MM in earnings. Is this deal accretive or dilutive?
Interview questions for non-finance majors (Originally Posted: 06/16/2009)
I have never taken a finance or econ course, but I do major in a quantitative field. What am I expected to know for the interview? Valuation? Accounting? or just brainteasers?
Also PhD. Also non-finance background. Did not get any 'tell me a time when you showed....' questions. They looked at my CV, and tailored their questions to that. After the first interview I was told that their biggest concern was that I would be inclined towards 'deep' research and would have problems doing research tailored to deadlines (based on the fact that I am used to PhD research). I did not have anything too technical. Also, when they asked anything technical I got the feeling they were interested in seeing my thought patterns behind my answers, rather than the 'right answer' if that makes sense.
It's Valuation.
No one will really be expecting you to know a ton of finance/accounting figures and formulas, so you won't really be tested on them - assuming you haven't taken many, if any, accounting courses either (if so, then you can expect more challenging questions on ratios, dilution, etc). That said, knowing some of the basics will definitely help, as you will probably be asked some of the basic questions such as name the 3 financial statements, how do you get to net income, little things that a quick accounting/finance tutorial online will clear up easily. Besides those, you will be asked (considering you are a quant field major - math, actuarial science, etc I'm assuming - I am assuming non-accounting major) a good number of brain teaser type questions in lieu of the more challenging finance/accounting questions. You may get asked a bit of valuation, but from a personal sense, not a textbook sense - meaning something like what would you look for in company X if you were considering buying it, or something like that - they're not expecting you to give textbook ratio and formula-driven responses, but rather, speaking logically, and making sound general arguments for things that you would look for, and things that would send you running - just to make sure your head is screwed on properly. In my experience, and from what I've heard, this is generally what you should expect - I'm sure there have been cases where a non-finance/accounting major was grilled with the rest of the business majors on an interview, but there are always exceptions - hope that you're not one of them.
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Why do people with non finance backgrounds get less technical questions in interviews? (Originally Posted: 08/04/2014)
Hi WSO,
I've been lurking WSO for a while now and have seen alot of people mention that non finance majors get less technical (or easier) questions in interviews.
What is the rationale behind this? I understand that companies are looking for the most intelligent individuals but does it really make sense to expect less of someone that chose an unrelated major and wants to break into IBD or ER for example?
Not trying to bash any non finance/econ majors but this practice has always been a mystery to me.
No offense, but the fact that you guys have PhD's makes a huge difference when considering that this advice was specifically tailored to a UG candidate. Also, this is a prelim interview so yes there will be some technical questions but the most technical questions will probably be 1 Buy and 1 Sell pitch. You really can't get too detailed into financial modeling, unless you bring it up. They will probably ask you about valuation methodologies which is a pretty simplistic question to answer. Keep it in your wheelhouse and if they ask you to walk through a DCF you should know how to do that as well but ER is more focused on equity recommendations obviously so the pitch is the most important part...
Having a PhD almost necessitates more scrutiny because they expect that you really know what you are getting into, especially given that you have no finance experience. The fact that you have a PhD and weren't prepared for a stock pitch in an ER interview is slightly disconcerting... you should definitely probe this forum extensively for advice regarding future interviews...
Yes, it does. They don't expect them to know as much technical stuff because they're not studying the subject full-time in school. Makes sense, because in interviews they are just trying to determine that a) you have a base of knowledge that's good enough to start with and if so, b) that they like you and want to work with you more than others they're interviewing.
Oppositely, you could argue that it's not that people with non-finance backgrounds get less technical questions (not really true if they're getting the basics that most people get) but that people who claim to have work experience that depends on technical knowledge etc get much harder/more technical questions - I'd argue it's less of the former and more of the latter.
It's like with anything else, if you don't study the subject or have experience in it you simply won't be able to answer the questions. It isn't that they necessarily expect anything 'less' of them, I'd suspect that in many cases non-finance majors face just as high of hurdles (i.e. more questions about why they want finance, etc).
Bear in mind that every company is always looking for people who think differently. You aren't always trying to hire the guy who can crank excel models day one and diagram interest rate swap agreements in his sleep. People who study other topics bring a different perspective and understanding than people who ace every single technical question. Frankly, since much of finance ends up being sales, it makes just as much sense to bring in people who are less technical up front and teach them just what they need to know to succeed so that you eventually have people who can sell later.
Good comment.
Sometimes you need a hammer for nails, sometimes you need a screwdriver for screws. IB teams are toolkits, not just a toolbelt of big swinging hammers.
Bear in mind that every company is always looking for people who think differently. You aren't always trying to hire the guy who can crank excel models day one and diagram interest rate swap agreements in his sleep. People who study other topics bring a different perspective and understanding than people who ace every single technical question. Frankly, since much of finance ends up being sales, it makes just as much sense to bring in people who are less technical up front and teach them just what they need to know to succeed so that you eventually have people who can sell later.
[/quote] WOW. i am surprised to hear this answer. some of the bankers in our office and some of the new hires are and will always be number crunchers. they couldn't give away free bottle service.
The point of any interview is whether the candidate is someone you can work with for 24 hours straight, and you don't want to tear your hair out. This implies 2 things: 1) they're smart and responsible enough that you can trust them with the work, and 2) they're not incredibly annoying. Once all the analysts are hired, everyone starts from the same level because everyone goes through the same training.
I used to like to say that the difference between going to undergrad business school and regular undergrad is about 6 months in banking. I've now revised that to 3 months.
Great answers, thanks!
I am a UG candidate.
Interview questions for candidates with liberal arts background (Originally Posted: 01/31/2014)
I noticed quite a few in-depth corp fin questions throwing around for ib interviews. Would there be much discrimination for candidates with LA background vs. business/finance/acct background? If in my resume I said I've taken classes in International Finance or Fin Modeling, would I get grilled on that despite I have LA background?
Your ib interview questions will be more or less the standard set everyone else gets.
they will generally tailor questions to your background to some extent. it depends on your school and experience, but can confirm that people at e.g. Wharton get grilled whereas people from Harvard or Yale etc. where they don't have business or finance majors will mostly get softball technicals if any unless they have legit prior banking experience. elite boutiques will ask technicals, some more than others, but they definitely vary by background. some BBs won't ask any or if they do it'll be really basic interview guide stuff.
Technicals were a walk in the park. I was a finance major coming off an EB internship. Was mad chill.
"Having a PhD almost necessitates more scrutiny because they expect that you really know what you are getting into, especially given that you have no finance experience. The fact that you have a PhD and weren't prepared for a stock pitch in an ER interview is slightly disconcerting... you should definitely probe this forum extensively for advice regarding future interviews..."
The response I got was that the analyst I was speaking with disagreed with me. It was the technical questions I flubbed, not the pitch. Needless to say, I tried to learn. The point was they were looking for somebody who could jump right into modeling without much training. Whether you're an undergrad or a phd with no experience, it wouldn't be the right fit.
Technical questions for LAC candidates (Originally Posted: 01/11/2010)
Hey guys,
I was wondering what types of technical questions I should be expecting in interviews. I go to a LAC and basically have no real technical background. I've done some searching through these forums and other websites, but it seems like I'm getting a mix of answers. Some people say that given my background, I won't need to know much and questions will be more 'fit' oriented. Other sources say that given the current hiring climate, I'll have to answer some fairly difficult technical questions. If anybody with actual, up to date knowledge of this could shed some light on what types of things I should know (I take it that financial statements and knowing what the valuation methods are is a minimum) that would be greatly appreciated. Thanks.
It really depends on the interviewer and the bank. I had some people who essentially gave me a free pass, and some who didn't. A good deal of my technicals weren't that difficult, and when they got hard, people didn't seem to have a huge problem that I didn't know. I think you're on the right track in terms of financial statements and valuation methods, but WSO guide is pretty exhaustive, that and what's currently happening in the markets.
honestly, know everything. I was from a quant background with literally no finance exp and i got a lot technical questions still
No Finance Classes (Originally Posted: 08/05/2013)
Hey guys, due to my recent decision to transfer to a better University, I will have not have completed any finance courses until after Summer Analyst recruiting is over in the winter months (I am transferring as a Junior).
Is this something that will hurt me in interviews? Should I maybe bring it up in a modest manner, maybe lowering the bar on my technical expectations? I have been teaching myself basically everything I know related to Finance in the past year or so, and have completed a couple internships in that time (one boutique IB). However, there are some things I simply do not understand yet because I have not had that academic setting to provide a solid foundation in the topic. For example, I am very interested in Lev Fin or DCM, but have not had any formal teaching on fixed income or even Macroeconomics (I received credit for it in High School, so my memory is faint of something four years ago).
Has anyone else been in this position before? Curious to see what you guys think. Also maybe more specifically to DCM/Lev Fin, what can I do to prep for interviews without having knowledge of these topics?
^i think that's false. they have to pay phds more than UGs, so I'd believe they expect less from UGs
Transferred out of USC? Where'd you land?
no finance background? (Originally Posted: 01/09/2007)
how detrimental to one's chances at a summer internship is it not to have any accounting/finance background for someone in a very quantitative major (applied math, physics, or engineering), with say a 3.6-3.7 gpa at a target school? are chances at GS, for example, pretty much shot nowadays unless you can solve a finance problem with ease? or do they look more for quick learners who have a strong facility with numbers/numerical patterns?
and by no finance background, i mean no formal experience in finance courses or employment.
depends what you mean by "target school." in general, though, i would think that math, physics, and engineering are huge. finance, particularly at the analyst level, is not exactly rocket science. you've got better quant skills that your average finance/econ undergrad, and likely many mba's. that being said, you should have some knowledge. you should be able to work through an intro accounting and intro corporate finance (grad level text) pretty easily, and pretty quickly. and hell, portfolio theory is not much more than an application of your basics statistics course.
also, check this out. http://www.usatoday.com/money/perfi/funds/2006-05-26-hedge-funds-usat_x… ... this is obvioulsy a different level, but notice the first line.
thanks. i go to a target ivy, if that helps.
but you need to answer this question:
If you are interested in banking, then why didn't you major in finance?
I have worked with people with liberal arts backgrounds who were top performers. While being from a target school with a finance major is the easiest route, it isn't the only one....
In his defense, I'm a junior Chemical Engineering major. I only realized I wanted to do IB halfway through the second semester of my sophomore year, and by then, it would have been difficult to switch to Finance AND graduate in four years.
Plus, finance classes are boring. Studying theory in classes for four years and actually doing it on the job are two TOTALLY different things.
i go to a target ivy, and we don't offer a finance majors. The closest thing that comes to it is Economics with a possible finance track.
As long as you have some sort of quant background, it'll help. That being said, I have many friends who are government/history/psych/philosophy majors who got into banking without much obstacle.
any interest in trading? they'd love to interview you.
You're fine. Most schools have econ, with no finance. More importantly, you're a summer. We're a lot less concerned about it for people we can test drive for 12 weeks.
It's like that for MBA summers too. Lack of an analyst background doesn't trouble you at all for summers. For full time (2nd year MBA) hires, we think it over very carefully.
From my experience in recruiting, virtually all banks like to mix it up. They're not gonna take on a whole class of history majors, engineers and chemists, but they're also not going to hire 100% finance and accounting majors either. As someone said above, the key as a non-finance major is convincing the interviewer that you're genuinely interested and have thought things through--they're looking to see not just if you have the ability but if you have the desire and interest to keep you going once the going gets tough and the hours get long.
if you're a physicist talk about how the heat equation got you interested in black scholes...
I'm a biological sciences major with a 3.6 (used to be higher but I took on too much last semester) and recently decided that I'd like to get into i-banking.
realistically, i just never considered it until late. but should i really tell them that? i've considered telling them that im interested in healthcare ib, but at the same time, it might backfire and shut me out.
thoughts?
Final Rounds for Non-Finance Majors (Originally Posted: 01/26/2008)
Hi. I've been hearing so much about finance questions being asked during superdays. I know the basics such of accounting and finance, but I'm not a finance major (though Econ & Math). What constitutes having a finance background? Being a finance major? What if one has only taken an introduction to accounting and an intro to finance course? I've had two classes of exposure to finance, but I expected to know how capital structure affects ebitda margins?
If there are no technical questions, then are final rounds all fit?
I'm an econ major. Last year I had absolutely no finance experience whatsoever. I was asked an accretion/dilution question and a M&A analysis question for the technical part of JPM's interview. I would be prepared for common technical finance interview questions, even if you don't have a finance background.
Would this be the same for a math/cs major in an S & T Interview??
First Round Interiew-No Finance Experience Whatsoever (Originally Posted: 01/10/2013)
I have a first round interview coming up in the next week, and I don't have any finance background. What would be good websites/books to read to quickly get an overview over the industry. I don't think I will get grilled, but I just want to be prepared. I already looked over the WSO technical interview guide as well as the "400 Essential Questions" but I still don't think I have a solid understanding of the accounting/financial concepts. Any suggestions for people with non-finance backgrounds?
Since you have limited time its not the quantity of material you cover that will help you, its the quality of your research and studying, so its important to have a focus that is geared towards the specific position.
Can you provide information on the position you're interviewing for and the type of company/firm/bank it is with?
Completely agreed. The recruiter understands that you do not have a finance background and as such won't ask you finance questions. If they do, just respond that you have not taken finance classes, but are a great learner and eager to learn finance stuff...
the interview is for a role as a SA in either equity capital markets/debt capital markets
non finance major seeking advice about interview prep (Originally Posted: 04/09/2007)
i am planning to interview for full time banking positions this coming fall and just want to know the best way to prepare for the technical questions since I am an econ major with no finance background. i pretty much know the vault guide inside and out and am trying to learn as much accounting as possible on my own (in addition to reading wsj daily, following markets, etc.) but if anyone has any recommendations or advice in general on anything else i should be doing in the way of studying , for example a particular finance or accounting textbook or anything else at all I would be extremely grateful for your insights.
You're doing fine Sir. Once you know the vault guide inside out, you're pretty much straight. Try learning some modelling. thats the only advice i can give, since i'm guessing you havent interned or anything.
i was wondering what you think about my chances in terms of my experience.
i have about a 3.5 GPA at the University of Michigan and im majoring in econ.
I am very active in extracurrics and hold leadership positions. i interned in financial services this past summer and also during the semester during school after that (in Citigroup's Wealth Management unit). I will be interning in B of A Corp Finance this summer where i hopefully can gain some more experience (its corp finance for the company itself, not other companies,in other words B of As finance division). do you think i have a shot at full time i banking interviews or should I seriously consider just sticking with b of a finance for full time(assuming i get an offer, which isnt guaranteed either). thanks for your help bro I truly appreciate the insights helpful guys like you give me.
I would say invest more time and commitment into the corp finance position you have now. Using that, you could then network your way into ib even though that would be tough on its own. Ross is a target anyways. i don't know how competitive your skool's selection is but you have a decent shot at getting full time interviews. it's really important you network right now so that if you don't get anything through your school's resume drop system, you could probably still get a shot. hit up the guys you worked with at Smith Barney and see if they could link you into the main place. I would imagine that full time interviews are tougher to get through than the internships cuz most programs just take majority of their interns.
Interviewing as a non finance major (Originally Posted: 06/08/2009)
Hey guys,
I wanted to know if non-finance majors get interviewed more-or-less the same way as a finance major for analyst positions. I am an economics major and was concerned about the kind of technical questions they would be asking me.
Considering the fact that I'm not a finance graduate, should I be concerned with being asked technical questions?
It depends on your background - what experiences you've had, what school you went to.
If I had to generalize, students from top targets tend not to have really difficult technical questions - it's assumed that the candidates are smart.
If you go to a non-target with a non-finance background, you need to demonstrate stronger technical knowledge.
I've written about types of technical questions in my posts (link below). Feel free to reach out with more specific q's.
Chase Us, Break In http://chasingconsultantsbreakingbankers.blogspot.com/_
I've got a non-finance background and I was grilled by some banks. It really just depends on who is interviewing you. I do think there is a tendency to go easier on the non-finance guys though.
~~~~~~~~~~~ CompBanker
I know this has been talked about in previous topics but what topics will they most definately be covering during the technical part of the interview? DCF? Comparable transactions? Formulas of common multiples? How to calculate bond prices?
Check out the WSO technical interview guide.
"Hope for the best, prepare for the worst," which means you should hope for easy tech questions, but be prepared to summarize LBO and be grilled on DCF.
probably not bond prices (although it's a very basic intro to finance question), but everything else you mentioned should be fair game.
Preparing for interview with little finance coursework? (Originally Posted: 10/24/2013)
I'm a STEM major who's interviewing early for a SA program, and I was wondering what suggestions people have done to prepare. My target offers very few classes in finance (though I've taken a lot of econ for a non-major) and I don't have too much of a background aside from one extra-curricular, so I'm worried about the technicals. I've heard really mixed things - I've heard that they don't ask too many technicals if they think you don't have much background, but I've also heard that S&T asks more technicals than IBD. Does anyone have any crash courses that are useful? I only have a few weeks until the interview - I already know some basics, but I don't know if it's enough. Any suggestions of what to do would be appreciated!
What is your SA program for?
ibankingfaq.com, macabacus.com, and investopedia.com are good resources to start with.
Thank you! It's at a BB in S&T.
If you are really short on time I suggest an interview guide. I have one on my site, WSO also has one, there are a couple others.
If you have time, then flick through a couple chapters of Hull. Theres a lot of info u dont need in it so be selective. Then once you have a general foundation, think about what product most interests you and go indepth on that product. I hate it when kids say "ive heard interviews wont get that technical...", well here is the kicker, they wont get technical if you dont know anything. Pretty much every interviewer will gauge your technocal knowledge and then increase the complexity. If he asks a very standard and easy question about options theory and you have no clue, there is no point for him to ask harder questions. But depending on how much you know the more technical an interview can get. It might not count against you to not be able to have a technical discussion, but you know what an interviewer will be a lot more impressed if you can, and its a way to stand out because most kids dont actually go beyond what their finance coursework goes through (which is often not very related to trading), and non finance people are even worse and just make the excuse that they werent taught any of it.
I interviewed some kids when i was tradin equity derivatives, and I was shocked at how many didnt even bother to read a book on eq derivs trading beforehand. How can you persuade someone that you are interested in the job if you couldnt even take a couple hours to read a book on it just because it "wasnt part of the coursework". I remember when i was interviewing for roles I had an interview with a structured credit desk and i had 2 days to prepare with knowing nothing about credit period. Went down to the book store, got what looked like the shortest but most practical book on CDS trading, then found a PDF from an ibank on credit correlation trading on google and cleared my schedule for 2 days. Then walked into the interview and was able to at least hold a conversation regardin the product.
Wow, thanks derivstrading! The alums who've contacted me from the bank have told me to play up the fact that I'm enthusiastic, smart and willing to learn because then I won't get questions which are too hard... but you're definitely right; it makes no sense to say that I'm interested in a field if I'm not willing to do the reading. I'm currently reading Hull and I don't think I have enough time to know it really well, so I'll probably go in, say I don't have much of a background but that I'm very keen to learn, and if they ask technicals I'll then answer with what I know.
If time is short, put your focus on the market and current events-read the wsj everyday-at LEAST the front page. You're MUCH more likely to get questions about your thoughts on the government shutdown than on convexity/duration. Banks can and do teach technicals. But they can't teach enthusiasm and love for the markets. Play up that market passion as much as possible-it's fascinating bc it deals with politics, cultures, wars, religion, psychology, etc. all of those things factor into the market. It's much easier to sell your interest in S&T based on that then what's written in Hull. (Although do mention if you've read Hull-you don't have to understand it but it does show initiative).
Also study hard what the industry entails-daily life, what is done in sales vs trading, how each position makes money and contributes to the bank. These are things that are important to recruiters and again show you know what you're interested in.
Lastly, come up with a few good stories about how your major and past experiences will make you a good fit for S&T. Examples that show you like working in a meritocracy, you like quick results and faced paced environment, quantitative, etc
If you do these things you set yourself up well to hit it out of the park!
Thanks a lot! I'm definitely trying to keep up to date with the news, and will continue to do so over the next couple of weeks. I'm worried about what questions they're going to throw at me about why I suddenly want to do finance after working so hard at STEM for the last few years, but I am interested in markets, so I'll try to skew it towards that :)
I wouldn't worry too much on that. I just got received my FT offer for S&T after majoring in ME History and Arabic. You do need to have a clear and articulate story prepared for why you want to make the switch though. It's good to have some sort of catalyst or experience that changed your mind. Mine was a personal finance class I took just for the experience which I loved, which caused me to read more about finance and the markets, which led me to do an internship in M&A, etc etc. Paint a clear path that has led you to sitting in that interview with them. Your major isn't super important because banks like some diversity. Also, if you are going for the trading side, STEM is more and more what they are looking for.
Liberal Arts majoring applying for ibanking internships -- interview questions and chances! (Originally Posted: 11/26/2007)
Hey all, I'm currently a junior at a HYP school, applying for ibanking and sales/trading interviews later this fall. I will be applying to the bulge bracket banks as well as similar caliber boutiques.
I have a 3.8 in my lib arts major. Also, I have been involved with my school's student investment club, work a part-time campus job during the term. Last summer (soph year) I interned at an Asian branch of a BB in its ER department.
I will also be interviewing early as I'm studying abroad.
I'm wondering:
What questions to expect? Technical? Fit? I have 2 econ and 2 finance classes, a keen interest in the markets, but no accounting or modeling experience. How technical will my interview be? Will the fact I have had an internship raise the bar? Will I be asked about the intricacies of DCF, CAPM, Black Scholes, etc? I have a general understanding of these concepts but could not use them in a work setting.
What are my chances -- Assuming I prep for both the fit and technical questions (to the best of my ability, probably learn the vault guide, etc) what kind of shot do I stand at landing an offer?
EDIT: For example, would I need to know stuff like this:
//www.wallstreetoasis.com/node/9841
Thanks for your help on these what may seem stupid questions.
First, it's hard to say what your chances are, because the market is down this year and there a lot of factors other than GPA that play into getting a job, but it sounds like you are on the right track.
As far as knowing technicals, it all depends on the bank. Some banks' interviews will be all or mostly behavioral. However, most (especially the more technical firms) will have at least some degree of technical focus. Any Ibanking hopefull should know the following and be able to articulate a description of each:
-DCF Analysis (backwards and forwards, know it all) -Basic Accounting (how do the financial statements flow together?) -Other basic types of analysis and how they are accomplished -How to calculate WACC, CAPM, etc.
All of the questions in the link you posted look like viable questions in an interview. There are plenty of resources out there for a non-finance major to learn this stuff, so be prepared.
I never went through the S&T interviews. So, someone else with have to advise. Good luck!
As far as technical questions, you'll get asked about things that may have pertained to your sophomore internship. You'll also get Qs about how financial statements link. I also got a lot of questions about how to account for things like depreciation or a debt issue. Finally, you will get asked about how to do a DCF and how CAPM fits in, as well as how to get levered and unlevered beta. Black Scholes is more for S&T so I wouldn't worry too much about that.
In terms of non-technical questions, you'll get asked Qs about the nature of the business, like the hours, culture, etc. You also better read the WSJ and know the details of 2-3 deals stone cold in case they ask you (preferably involving the bank you interview with, or at least the industry you are interested in).
As far as your chances go, if you are at HYP with a 3.8 and are active on campus, you have an extremely good chance at getting tons of interviews. BBs pluck constantly from the top schools like those three and the rest of the Ivies. However, being at one of those schools hardly ensures you an offer. I came from a total nontarget and am sure I beat out dozens of Ivy leaguers for my offers, so IMHO the school only gets you to the interview. Once you are in there with people from the bank, it us up to you to prove you are bright, social, and determined to work in this industry.
search the forums for questions you should expect tons have been posted, if you go through the questions on this site and the vault guide you should be set. You have a 3.8 from a target and BB internship so I would say you will get tons of interviews, but its up to you to turn these into offers. Good luck!
Check out each banks career site for more guidance...a lot of them have started to post resources for non-business/finance majors that can be tremendously beneficial.
Here is an example: http://usibcareers.jpmorgan.com/content/content_381.html
I went through the same thing, and the above advice definitely holds true. The best advice you are going to get is to make sure you have your story down--why banking, and why did you choose your major. Have these two down and be able to demonstrate your interest in the industry and you should do fine. Good luck.
As a Yale Econ major I recieved varying degrees of technical questions in interview. If the interviewer was a Yale graduate who understood a lack of finance in our liberal arts education, they stayed away from finance questions other than things I had stated in previous work experience. If not a Yale grad, I was sometimes asked questions and I would respond that I had no finance questions and econ here is very theoretical so I can't answer. They will train you with all that, but the key is demonstrating knowledge from previous work. For instance I worked at a boutique I-Bank and always mentioned that I had done no actual DCF modeling and only knew the very basic ideas of Net Present Value, etc. But I was able to talk about valuation through market comps and comprable companies.
You can ignore many of the previous posters saying you need to know a good amount about finance. Have good knowledge of a few subjects you are familiar with, but you don't need to learn all the other stuff. They will not expect you to know this with a liberal arts education. I know only the most basic accounting and have no clue how to do WACC or CAPM. I have older friends who took only one or two econ classes and had almost no finance experience and fared well in the past years (this year has been tough regardless). You don't need to go out and teach yourself accounting, modeling, etc. Just be honest with your interviewers.
You may unfortunately end up with some prick Wharton grad who keeps drilling you with finance questions you were never taught, but most of my interviews focused much more on fit and talking about my experience.
To the OP,
As a liberal arts major, I was never asked any hardcore finance questions.
Most of the questions stemmed from my resume.
Typical fit and experiences. They will use these ways to test how you think.
2 interviews in the next 10 days. No prior finance experience. HELP (Originally Posted: 09/13/2014)
Through my on campus recruiting I have been fortunate enough to get interviews with a PE firm(Sanford Bernstein) and a S&T (Citi). However I am a humanities major and have no real experience with the markets. Any tips on what to do/expect?
Thanks
wow no finance experience and getting interviews with bulge bracket....gotta love those target schools...
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