Fixed-income interview help... does anybody have any suggestions/experience?

andrewdc's picture
Rank: Chimp | banana points 6

I am going in for a final round interview at a bank that focuses primarily on fixed-income. The recruiter told me to prepare for 100% technical questions regarding DCM and FI, however, it feels as though there is so much to cover. Does anyone have any suggestions, experience, or knowledge of specific questions that will be asked? I would love to go in and nail all their questions, so any advice is much appreciated.

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Comments (185)

Oct 21, 2006
andrewdc:

I am going in for a final round interview at a bank that focuses primarily on fixed-income. The recruiter told me to prepare for 100% technical questions regarding DCM and FI, however, it feels as though there is so much to cover. Does anyone have any suggestions, experience, or knowledge of specific questions that will be asked? I would love to go in and nail all their questions, so any advice is much appreciated.

I'll give you a set of questions I got as well as what I heard other candidates in my final round got:

  • What is duration? How is it calculated?
  • Term structures? Yield curves, their shapes and
    how do you make money on the various ones?
  • What's the present yield curve look like here (Canada) and there? (USA)
  • Tell me some of the different bonds you know about...what about their prices with respect to each other? (Plain vanilla/convertible/callable)
  • If interest rates go up/down...what would you do with a bond that is presently variable in coupon rate that has a convert option to a fixed coupon bond?
  • Show me how to do a DCF.
Oct 21, 2006

have a strong view on global fixed income market

Oct 22, 2006

does anyone know of any websites/books that can help with these questions that monkeybusiness threw out? I'm on a buyside trading desk and feel that my knowledge of the markets is definitely not up to par. For my particular job, it really does not have to be ( a monkey can do it) but obviously I plan on moving up, doing something different, possibly moving to sell side at some point, so I need to learn as much as I can. any suggestions?

Oct 22, 2006

just google, most of the info is easy to find.

Jan 11, 2007

I also want to break into DCM. Apart from applying and applying, I am also learning somthing every day still. Can you please give a tip on which spreasheets and to which moments in financial statement analysis I shoul pay more attention to be able to handle DCM role, origination or structuring in particular?

Open to all, closed to prejudice

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Jan 11, 2007

I'm going for an interview too, but if they ask questions like these... i'm screwed

Jan 11, 2007

...I trade US interest rate markets/FI...here is a list of books u should read if u want to further ur knowledge...

Fabozzi, US Treasury Securities and Derivatives
Hull, Options, Futures and Other Derivatives
Burghardt, The Treasury Bond Basis
Burghardt, The Eurodollar Futures and Options Handbook

...once u get done with those re-post and i'll give u more...

Sep 3, 2008

Does anyone have any suggestions about treasury associate interview?
Specific responsibilities will include: providing support
for existing businesses and trading strategies; facilitating the
implementation of new strategies; coordinating accounting, operations,
compliance, tax, and infrastructure issues; data analysis; and
development of systems specifications
any help would be appreciate. thank you

Sep 3, 2008

say that you prefer something more technical and quantitative.

Sep 3, 2008

Whatever you do dont say you like equity better because you want to work less hours and have more fun.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

Sep 3, 2008

he is applying to fixed income

Sep 3, 2008

you must be quant type

Sep 3, 2008

bump

Sep 3, 2008

that sounds like sales...sales people don't need any technical skills coming in...what they need to know the bank can easily teach...but "personality" cannot be taught.

The strats groups hire 2 types
1-phd rocket scientists
2-excel/programming gurus

Sales however hires primarily on fit and personality.

Sep 3, 2008

Won't the sales people need to know their stuff and the markets though? besides the math/programming I feel that they can't just hire a dummy who can shmooze people.

Sep 3, 2008

I'm curious about middle office role too

Dream BIG.

Sep 3, 2008
  • Math questions (Ito Calculus, Probability)
  • brainteasers
  • Your research
Sep 3, 2008

I am comfortable with probability, brain teasers and my research. I was not planning on looking up ito calculus, SDE, etc. I am also CFA level II candidate so I was expecting more on put call parity, etc?

Sep 3, 2008

alot of brain teasers, quant questions, bond questions

Sep 3, 2008

Also programming will probably be important. If you have finance stuff listed you will be asked about it as well.

Here's a classic bond question:

Suppose you have a zero coupon bond that pays 100 at maturity with price 50 today. Now let's say you have an option that pays 1 when the price of the bond reaches 70. What is the price of the option today? Assume interest rates are stochastic with unknown dynamic.

Sep 3, 2008

I guess by no arbitrage at most 50/70?

Sep 3, 2008

Very good.