Morgan Stanley Credit Risk Analyst Interview HELP!!
Hi,
Has anyone interviewed with Morgan Stanley for a Credit Risk Analyst role before?
If yes, what questions did you get asked? I know with Credit Risk, there are so many avenues they can explore.
I have two interviews with some Executive Directors. So I guess it will very detailed.
Please share your experiences.
Can't speak to MS specifically, so take with a grain of salt. But assuming you're currently a student applying to entry-level, expect the usual "fit" questions plus some of the basic credit-pertinent finance questions. Examples of the latter: *Walk me through the impact on the three statements as a company buys steel, makes widgets, sells the widgets, and collects the payment. *What's the difference between a revolver and a term loan? *What is leverage? How is it calculated? *All else equal, which is more credit worthy: a company with high fixed and low variable costs, or low fixed and high variable costs?
Thanks so much for your response.
My background: Not a student (I wish I was). I have accounting experience (1 year) and very a year's experience working at a ratings agency. So I know I will be grilled hard.
What would the right answer be for your question about the credit worthy firm?
My answer is that it depends on the firm's business model, its industry, it's sales/revenue forecasts. The main concern should be how it is financing it's costs.
Your ratings agency experience should be pretty useful.
I hate the last question because you're right, "It depends" is the only practical answer. In the real world there's no such thing as "all else equal." But the question is meant to test your understanding of operating leverage, so I think the answer they'd like to hear is a preference towards low fixed costs. In a downside scenario (your only real concern from a credit perspective), if revenues fall a firm with lower fixed costs is going to suffer less than a firm that needs more gross profit to support its higher fixed costs.
Hope that helps.
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