Final Round for Credit Risk Analyst at BB
I will be having the superday for the Credit Risk FT analyst position at a BB soon, and I would love to hear more advice on what I should expect for the final round. Would there be a lot of technical/accounting questions? I never took accounting cuz I went to a liberal arts but I have basic understanding of the financial statements and the connections among the three.
Basically, what can I prepare in order to ace this round. I am very interested in this opportunity and therefore I appreciate it very much if you guys can give me some tips.
the technical questions asked in a risk interview are similar to IB questions. You should know your basic accounting principles and the financial statements
HI packmate, thank you for the advice. By basic accounting principles, do you mean like EV, FCF, WACC and CAPM? I didnt take accounting so not sure what accounting knowledge I need to study for.
Yep, and know how certain transactions affect the financial statements
obvious, but know everything on this page in depth.
http://en.wikipedia.org/wiki/Credit_risk
and this for general knowledge: http://en.wikipedia.org/wiki/Credit_rating_agency
worked in middle officer before. Definitely have a strong grasp of the 3 financial statements and credit premiums on bonds. Better know what a CDS and CDO are too
Thank you for the suggestions. I will brush up all of them for the interview. Are there anything else I need to be concerned with?
By understanding the financial statements, do you mean like the main line items of each, the connection among the three? I have the Finance and Accounting Guide but not sure how in-depth the questions will be
i wouldn't know persay since I did market and not credit risk, but yes how they connect and every single way they affect each other. Also know how to tell if a company is risky or not, be well versed in different margins, leverage ratios. catch up on some of Moody's or S&P's rating system which you can find on their site. might have to make a free account.
http://www.wallstreetoasis.com/blog/interview-with-credit-risk-associat…
use google man, im literally spoon feeding
Will they ask you about the credit risk of a specific company? I figure it would take a long time to do one from scratch esp if you have never done it before?
Is this for corporates or FIG?
Hello td12,
I am actually not sure whether it is for corporates or for FIG. It is an entry-level so I assume it is going to be general Can you please share your experiences with interviewing? I would appreciate it very much. I was on glassdoor yesterday and there was one person having questions about Stochastic Calculus, Black Scholes Equation and the price of put and call option. I got freaked out since I never learn about those. I went to a liberal-arts and didnt have any of those classes about finance, investing....etc
I’d be surprised if they asked you questions on that material. As mentioned, just make sure you are very comfortable discussing financial statements and how certain transactions would impact them. At the minimum, I’d suggest reading through the MD&A section in the K/Q of whichever company you are interviewing with and developing pertinent questions about the present/future conditions of their operations. If you know who you’re interviewing with, then try to find common ground to build rapport.
Recently went through the process from first rnd to super day for a BB's FT credit analyst position.
Non-behaviorals were: How does the government shutdown affect blank industry? company A is asking for xxxMM to acquire another company. how does their financial statements change? Can you name any examples of things found in the footnotes of a financial statements that will help us during a risk analysis of a company? You're company A and you raise capital through bonds to buy PP&E, after two years it is determined your value of the purchased equipment is actually lower by $2MM. You sell the equipment 5 years later. Tell me what happens to statements in each of the three stages.
7 interviews total and technical questions were about 20% of the questions asked. They really care about fit so smashing the technicals were not of the utmost importance but this is simply my takeaway from the interviews. Good luck!
Thank you so much for these hints... This is extremely helpful. Now I have a better sense of what the technicals questions will mostly focus on. In terms of fit, I assume it is the same for all companies? Like the candidates should be a fast-learner, willing to learn, able to work for long hours, superb analytical skills, etc??
Sorry I'm a noob, how would you answer these?
Sorry I am a noob, how would you answer these?
Companies may leave off a liability in the f/s and include it in the footnotes. In doing so, the company's liquidity ratios would be inaccurate. Also, you may get a better idea of how the company lays out their borrowing costs through things like rates and maturity dates on the company’s debt.
Think operating leases for instance. It's an off BS agreement, so there is no asset to pledge as collateral or liability recorded. However, in reality, it is a commitment by the company to pay a set fee each year under the lease agreement. You'd find that in MD&A.
Thanks! I will definitely be reading one today to better my understanding of the details in it.
Anything that would affect normalizing the statements. Although dep exp may be missing from Inc Stmnt it may be explained in footnotes that dep is part of COGS or other expense line.
Another example could be litigation. It isn't something that affects numbers but it's an aspect you should take into account when assessing risk. It's also something that would warrant a call to that particular company to get clarification on.
anyone heard back from the MS superday?
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