Corporate Banking final interview

BobTheBaker's picture
Rank: Human | 13,825

I have a Corp Banking interview coming up soon for an energy group. For those in corp banking, how should I prepare? What is the typical corp banking interview like? Any energy specific items or ratios I should focus on? Thanks for the help.

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Best Response
Feb 20, 2018

Couldn't hurt to familiarize yourself with EBITDAX and the two types of accounting methodologies used for exploration expenses: successful efforts vs full cost.

Feb 20, 2018

Not a bad idea to familiarize yourself with the structure of a Credit Agreement, ISDA specifics incl. ATEs, refresh your credit skills, know generally what's happening in the debt markets, be able to speak on how tax reform is effecting US companies (check Q4 earnings transcripts), and of course explain how you can 'keep the football in the air' and always keep the client happy

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Feb 20, 2018

any idea where I can get stuff like a Credit Agreement? WTF is an ISDA and an ATE? This post makes me feel very unprepared.

Feb 20, 2018

FactSet will have a link to download, or check any 8-k 'entry into definitive agreement' and look for a 'material contract' exhibit to view the agreement, ISDA is a standard agreement between trading counterparties which would precede a line of credit related to say FX exposure. ATEs are additional termination events negotiated as part of the ISDA that defines what would allow for the agreement to be automatically terminated. Also make you know the difference between affirmative and negative covenants in the credit agreement

Feb 20, 2018

Don't stress yourself out, documents like those are comparable to things like LOIs, term sheets, SPAs and such for M&A and are nothing more than the documents used during the process itself. If you are interviewing for an entry level role, its great to be familiar with those things however that likely isn't what firms will be testing you on, as those can be picked up quickly on the job.

Aside from what has already been mentioned, I would definitely try to get a better understanding of how energy financial statements work if you have the time(i.e. full-cost accounting vs successful efforts, differences between upstream/midstream/downstream/ofs, etc) and how all of that plays into the typical credit analysis that you would do. Its also important to have a strong grasp of the macro environment, as oil prices have a direct impact on your ability to repay and your credit rating.

If interested, PM me your e-mail and I have a short doc of notes on O&G companies that I can send to you. Not comprehensive by any means, but might help.

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Feb 20, 2018

I assume that youre plugging a position that was vacated, as opposed to normal rotational addition (people making the jump from Analyst to Assoc or Associate to PM) given the timing of your interview. At least in my case which was the situation I just described, it was really a fit based interview so - not that I need to tell you- put on a smile, read the room and do some recon on your interview panel and you should be fine. I will say, since your sector is O&G/Energy you might be expected to explain (high level) how different the operating cycle of your industry is different from say a widget manufacturer or retailer, again you're from Houston so this should be second nature haha. Good luck man.

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Feb 20, 2018

What position is this for? Analyst? Associate? That would probably be helpful.

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Feb 20, 2018
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