Morgan Stanley Commodities Interview
Have an interview coming up with MS in Commodities group. Below are the responsibilities:
Undertake analysis of energy pricing information. This includes backtesting trade ideas, assisting with the valuation of complex structured products, data-mining, and other ad hoc projects required by the trading desks. • Assist with entering trades into proprietary risk management system. • Conduct research projects. • Provide general support to team members.
- They mentioned I had to have strong interest in trading and financial markets.
Which websites should I be following? I know basic banking M&A stuff but not the energy/mining sector - are they relevant?
What do you think they are going to be towards? Is it a lot of technicals? What should I focus on when I start cramming? Any tips and direction would be appreciated....
***Also mentioned The interview will include answering problem solving questions on pen/paper or with the use of excel.*****
What should I expect for this question?
Thanks so much
banking M&A isnt gonna help you at all here. Depending on time I would get a working knowledge of derivatives (Hull, you can prob find some commod specific one). If not enough time then just use wikipedia or other online sources. My interview guide is a basic intro but isnt really commodity specific so might not be what you need.
In terms of commercial awareness: -look at the major commods (gold, silver, oil, gas etc) and see what the trends have been for the past year/6 months/1 month + current levels. Know what it means when someone says silver is in backwardation and why it may be the case. Know why the brent/WTI spread was so wide a couple weeks back and what has happened to it. Read up a little on what are the key driving forces behind each commoditiy (supply, demand issues). There was a great article on zero hedge about how pension funds were extremely underinvested in gold and silver and what affect this might have, i suggest to search for that article.
-you will want some trade ideas, I posted a thread a couple weeks back about how to put together a trade idea for interviews, (I also posted it here: http://www.leveredhedge.com/articles/interview-articles/how-to-generate-trading-ideas-for-interviews/
Pen and Paper Problems -Get Cracks book "Heard on the Street", there is a pdf floating around online so just search for that, and go through some of the questions. These are most likely the type of stuff they are going to ask but dont hold me to that.
my bad, missed the Excel part, no idea what type of stuff they would ask.
Could either be some basic pricing model and you would need to create a quick price, or calculate a hedge ratio etc. Other users can prob chime in on this one.
This position looks to have alot of range..I wonder why they would want you to enter trades... For valuation I would know what a spread option, grade option, calendar option. Research I would know the basics of S&D balances.
Man that's rough...Excel problems in an interview?
dervistrading! Once again! Prime timing to promote your product.
@Buyout King: If you're undergrad, I wouldn't sweat it. MS if very laidback and all their undergrad interview were fit based. Obviously you should be following the markets, but in terms of technicals there is nothing. Definitely no Excel.
OP specifically states that there will be an excel portion. Interviews differ hugely across divisions/desks/interviewers/candidates and just because one candidate goes through a process without any technicals doesnt mean that is the standard process.
OP -- what position is this for? What's your experience level?
There's a reason that MS commodities is so damn good. The desk there is very unlike the other desks at MS in just about every way -- including in the interview.
I interviewed with them back in the day for a SA FICC S&T position. My fixed income superday consisted of about 8-10 interviews with a few traditional FI groups such as distressed debt and high yield (interviewed with traders, researchers, and structures), and 2 interviews with the commodities desk (they're out in Westchester so only a few of them made the trip. They probably interviewed ~5 out of the 35 candidates there).
My interviews with the traditional "fixed income" people were essentially fit questions with a few market questions sprinkled throughout.
My interviews with the Commodities people were very, very different -- think psychological experiments, mental math questions, brainteasers, extremely vague conceptual explanations of mathematical concepts and other academic subjects, etc. I felt extremely awkward and on edge throughout the interview, but in truth, they probably got the most real view of who I actually am out of any interview I've ever been in.
PM me if you have questions
Did you get the job? What preparation do you think paid off/you might have missed.
Thanks
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