Rates Derivatives Trading - Interview Question Examples?
Have an interview coming up for a role in this space - anyone have any examples of interesting questions/problems that could come up? I've been through the ones in Heard on the Street but keen to make sure I've covered as much ground as possible.
Based on the most helpful WSO content, here are some examples of interview questions and problems that could come up for a role in rates derivatives trading:
Understanding of Rates Products:
Macro and Market Impact:
Hedging and Risk Management:
Quantitative and Technical Skills:
Scenario Analysis:
Behavioral and Fit Questions:
These questions cover a broad range of topics that are likely to be relevant for a role in rates derivatives trading. Good luck with your interview preparation!
Sources: https://www.wallstreetoasis.com/forum/trading/qa-1st-year-bb-london-rates-trader-taking-your-questions?customgpt=1, Q&A: Rates & Macro Research/Strategy - Career Path, Technical Topics, Education, etc., https://www.wallstreetoasis.com/forum/asset-management/sales-trading-interview-guide-gekkos-guidance-part-2?customgpt=1, For love of the game, Q&A: Equity Derivatives S&T
bumping due to getting buried by all those company reviews a couple of days back
Judging by your flair I am assuming this is for buy side. Not too sure but would assume some relval stuff. I am a sell side quant/trader so my scope is a bit different but I could try to help with any questions. Also what sort of level is this? Recent grad will obviously receive different questions than someone that has been in the industry for 5 years.
Hey thanks, it's actually on the sell side for a junior role (current role is more of a centralised quant type of thing, looking to sell side to get into a market-facing seat) - any thoughts would be much appreciated
Really depends on scope of role, I wear many hats at my shop so your experience could be different. Roughly though I would make sure you have a firm grasp on caps/floors/swaptions, stochastic volatility (everything is normal nowadays). Basic things would be like swap pricing, risk bucketing etc. I mostly code in cpp and python. Also depends if you are dealing with US rates, G10, EM, etc.
Thanks v much, definitely helpful. If you're able to I'd be keen to understand a little bit more about how the quant side ties into your role, as that's definitely something I want to emphasise to them in terms of my potential value add. Are you essentially building out the pricing/running a kind of semi-systematic strategy?
I don’t mind sharing more detail but I don’t want to dox myself either, so feel free to PM if you want to know more.
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