Investment Banking Practice Interview

02/07/2015 INVESTMENTBANKINGPRACTICEINTERVIEW

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INVESTMENTBANKINGPRACTICEINTERVIEW

Tryapracticeinterviewforinvestmentbanking,answeringtypicalquestionsandalsogettingtipsonhowyoushouldanswer.Therearealsootherquestionsstudentshavebeenaskedatbankinginterviews.Itdiffersfromretailbankingisalsoknowashighstreetbankingwhichislargelyaboutmanagingcustomersaccounts,sellingloansandmortgagesetc.:seeourseparateinterviewonthis

INVESTMENTBANKERSneedtobeNUMERATEandgoodatANALYSINGINFORMATIONinordertoresearchthemarketandcarryoutfinancialmodeling.ThisinformationisthenusedinMAKINGDECISIONSandpresentinginformationtoclients,whichrequiresSELFCONFIDENCEandgoodCOMMUNICATIONskills.GoodTIMEMANAGEMENT,inparticularWORKINGUNDERPRESSUREandMEETINGDEADLINESisessentialinthishighpressureworkingenvironment.Employerswillexpectyoutobeabletotalkaboutanddemonstratetheseskillsatahighlevelthroughouttherecruitmentprocess.Thesortofevidenceyoucouldofferincludes:

LEADERSHIP:chairpersonofastudentsocietySPOKENCOMMUNICATION:debatingsocietyNUMERACY:workexperienceinafinancialenvironment

APPLICATIONS&INTERVIEWS

PRACTICEINTERVIEWS

>MultipleChoice

>GeneralInterview

>Accountancy

>RetailBanking

>InvestmentBanking

>Computing

>Law

>Marketing

>RetailManagement

>Science

>Journalism

>Personnel&HR

>CivilService

>TeacherTraining

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Answersto150interviewquestions

Answeringcompetencybasedquestions



MAKINGDECISIONS:planningagapyearandadaptingyourplansinchangingcircumstancesTIMEMANAGEMENT:achievingstrongacademicresultswhilebeinginvolvedinotherUniversityactivitiesatahighlevel.

Beforeyouarrive...Beforeyourinterviewmakesurethatyouarewellinformedaboutthecompany,thebankingindustry,thefinancialmarketsandthebusinessworldgenerally.YouwillbeexpectedtoknowwheretheFTSEandDowJonesindexesareandhavebeen,whereLIBORandFedratesareandtobeuptospeedoncurrentfinancialandbusinessissues.ReadtheFinancialTimesdailyandregister(forfree)atwww.ft.comtogetemailupdates.Seealsothelinksbelow,thelinksfromourbankingcareerspagewww.kent.ac.uk/careers/sitebank.htmandourInterviewReportsforbankinginterviews.Youarelikelytogetverbalandnumericalreasoningtests:seewww.kent.ac.uk/careers/psychotests.htmforexamples.

Therefollowsomeofthequestionsthatmightbespecificallyaskedofstudentsatinterviewsforinvestmentbankingjobs.Generalinterviewquestionsarenotaskedhere,soyoumightalsoliketotrythegeneralormultiplechoiceinterviewsaswellforstandardinterviewquestionsthatcanbethrownatanycandidate.Clickon"FirstQuestion"tobegin.Thinkcarefullyabouthowyouwouldanswer,thenclickon"ShowAnswerTips"togetanideaofhowyoushouldbeanswering.

FirstQuestion ShowAnswerTips PreviousQuestion

OtherquestionsstudentshavebeenaskedatbankinginterviewsIfyouhavebeentoanintervieworassessmentcentrerecentlypleasefillinourinterviewreportformtohelpotherstudents.

Aboutyourstudy,workexperienceandskills

INTERVIEWQUESTIONS:>Placements/Internships

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>Sales

>Actuarial

>ManagementConsultancy

>CaseInterviews

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CHOOSINGACAREER

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TalkmethroughyourCV(GoldmanSachs)MostofthequestionsaskedwerebasedontheCurriculumVitaethatyousubmittothem.(UnitedBankforAfrica)Whatdidyoustudy?Tellmeaboutyourcourse.(Citibank)WhydidyouchooseyourAlevels?(MorganStanley)Tellusaboutyourdegreecourseandwhyyouchoseit?(Citibank)Tellmeaboutaboutyourworkexperience.(Citibank)Howcanyourelateyourstudiesandexperiencetoyourworkwithus?(Citibank)Questionsrelatingtosocialandextracurricularactivitiesduringmydegree(Citibank)Tellmeaboutyourinterestsandthelevelofsportsatwhichyouplay.(Citibank)HowcanyourelateyourstudiesandexperiencetoyourworkinCitibank.Whyshouldwehireyouandnotanyoneelse.(Citibank)Wheredoyouseeyourselfin25years?(MorganStanley)Wheredoyouseeyourselfinthefuture?(GoldmanSachs)Whatisyourambitioncareerwise?(FidelityInvestments)

Competencyquestions.SeeourpageonHowtoAnswerCompetencybasedQuestions

Tellmeaboutatimewhereyouhavemanagedrisk(GoldmanSachs)Giveanexampleofamistakeyoumade/whatdidyoudoaboutit?(FidelityInvestments)Tellusofatimewhenyou'vefailedatsomething.(J.P.Morgan)Haveyouevermadeamistake?Tellusaboutit.(J.P.Morgan)Giveanexampleofwhenyouworkedunderpressure.(KBCFinancialMarkets)Describeatimeatworkwhenyoucopedwithaproblem(KBCFinancialMarkets)Whatisthemostdifficultdecisionyou'vehadtomake?Howdoyouprioritiseyourworkatthemoment?(FidelityInvestments,Citibank)What'smoreimportantdeadlinesorqualityofwork?(GoldmanSachs)GiveanexampleofwhereyouhavehadtoprocessinformationGiveanexampleofwhereyouhavehadtoworkwithpeople/customersGiveanexampleofwhenyouhavetakeninitiative.(J.P.Morgan)Describeatimewhenyoucommunicatedeffectively.(BarclaysCapital)Tellmeaboutatimewhereyouhaveshownleadership(GoldmanSachs,BarclaysCapital)Giveanexampleofwhereyouhavehadtomotivateothers.Whatopportunitieshaveyouhadtoworkinateamandwhatwouldyousayyourrolewas?(BarclaysCapital)Giveanexampleofwhenyouworkedinateam.(KBCFinancialMarkets)Giveusanexampletoshowyou'reateam



player.(J.P.Morgan)TechnicalskillsoncomputerespeciallyExcel.(KBCFinancialMarkets)Tellmeaboutyourstrengthsandweaknesses.(J.P.Morgan)Whatwouldyoufriendssayisyourstrongestpoint?(MorganStanley)Whatkeyskillscouldyoubringtous?(GoldmanSachs,MorganStanley)

CommercialAwarenessQuestions.SeeourpageonHowtoanswerCommercialAwarenessQuestions

Whatdidyouthinkofourpresentation/whatdidyoulearn?(FidelityInvestments)Whatskillsdoyouthinkwerelookingfor?(FidelityInvestments)Whatdoyouknowaboutus?(MorganStanley,KBCFinancialMarkets,Citibank)Whydoyouwanttoworkforus?(J.P.Morgan,GoldmanSachs,Citibank)Whatattractedyoutous?(MorganStanleyandGoldmanSachs)WhyGoldmanoverotherbanks?(GoldmanSachs)WhatcanyoutellmeaboutGoldmanSachs?(GoldmanSachs)Tellmewhatyouknowabouttheinvestmentbankingindustry.(MorganStanley)Whydoyouwanttoworkininvestmentbanking?(J.P.Morgan,GoldmanSachs)Whatisthemainfunctionofaninvestmentbank?(MorganStanley)Whydoyouwantthisparticularjob?(Citibank)WhyhaveyouappliedtoGlobalCreditRiskManagementratherthantrading?(J.P.Morgan)Howmuchofanimpactdoyouthinkthisjobhasonthecompanyasawhole?(FidelityInvestments)Whatdidyoulearnaboutthedifferentroles?(FidelityInvestments)WheredoesGoldmanmakemostofitsprofits?(GoldmanSachs)Whatwouldyousayisthemostimportantaspectofourworkculture?(MorganStanley)WhatdoestheOperationsandFinancedivisiondo?Whoareourclients?(MorganStanley)Whyoperations?(GoldmanSachs)Whatdoyouknowaboutoperations?(GoldmanSachs)Whatdoesoperationsdo?(GoldmanSachs)Whatskillsarerequiredforoperations?(GoldmanSachs)Whyisoperationsimportant?(GoldmanSachs)Whataretheproblemsfacingkeyoperationsworkers?(GoldmanSachs)HowdoyouthinktheeconomiccrisiswilleffectOperations?(GoldmanSachs)Whatkindoftasksdoyouthinkyouwouldbeworkingoninoperations?(GoldmanSachs)Whatarethecorecompetenciesneededforoperations?(GoldmanSachs)WhyhaveyouappliedtoGCRMratherthantrading?(J.P.Morgan)Technicalquestionsre.financeandequitymarkets.(KBCFinancialMarkets)Knowledgeoffinancialmarkets,currentdevelopments



infinanceworld.(KBCFinancialMarkets)Whatdoyouknowaboutthefinancialcrisis?(GoldmanSachs)Giventherecenteconomiccrisis,bankshavebeengivenalotofbadpress,doyouthinkit'sallourfault?(GoldmanSachs)DoyouagreewithObama'sviewsaboutseparatingbanksduties?(personalandinvestment?(GoldmanSachs)Whatarethedifferencesbetweenequitiesandbonds?(Bloomberg)Whatisthecurrentpriceofabarrelofoil?(Bloomberg)

Hypotheticalquestions.SeeoursectiononthisIfyouhadaverylargeassignmenthowwouldyoustructureyourtimetomakesureyoumetthefinaldeadline?(J.P.Morgan)IfItoldyoualistof7thingstodoandwalkedoff,whatwouldyoudo?Ifyoucouldn'tfinishallofthembytheendoftheday,whatwouldyoudo?(MorganStanley)Ifyouhadaverylargeassignmenthowwouldyoustructureyourtimetomakesureyoumetthefinaldeadline?(J.P.Morgan)

MARKETSIZINGquestionsTheseevaluateyourtemperamentandanalyticalskillsandareoftenusedinCASESTUDYinterviewsbyconsultancyandbankingfirms.Theytestyourlogical,analytical,numericalandproblemsolvingskills.Alotoftheskillinansweringthesequestionsinvolvedmakingreasonedestimatesofthemarketsize.

HowmanywomensellAVONproductsintheUK?(McKinsey)HowmanyphotocopiesaretakenintheUKeachyear?(McKinsey)HowmanypianotunersarethereintheUK?(Abrainteasertheywantyoutologicallyarriveataguestimatee.g.10,000,000householdsintheUK,1in5haveapianoetc.)(LEK)GivetheweightofafullyloadedJumboJetattakeoff.(LEK)HowmanylightbulbsarethereinLondon?(J.P.Morgan)Howmanydegreesaretherebetweenclockhandsat3.15?(J.P.Morgan)

ForhelpwithansweringtheseseeourpageonCASEinterviews

PsychometrictestsMostinvestmentbanksgiveyoudemandingnumeracytestsaspartoftheirselectionprocedure.Thenearestonlinepracticetestsforthesearethoseontheefinancialcareerssiteathttp://students.efinancialcareers.co.uk/numerical_test.htm

OurSecondPracticeNumericalReasoningTestisalsoquitesimilarbutyouwouldprobablyneedtobescoringatleast19ortwentyonthistohaveagoodchanceofpassingtherealinvestmentbanktests.

Numerical20minutesfor20questions.Finding



percentageincreasesanddecreases,compoundinterestquestions.Verbal15minutesfor30questions.Typical'True''False'or'CannotSay'questions(BarclaysCapital)NumericalandverbalbothinthefirstroundNocalculatorswereallowed.Eachlastfor30mins.TypicalquestionssuchasthoseontheSHLwebsite,ratios,percentagechanges.Verbalwastrue/false/cannotsaytypequestions.(GoldmanSachs)Numericalandverbal.20minseach.Numericalwasdatainterpretation.(GoldmanSachs)Verbalandnumerical(nocalculatorwasallowed!)30minseach.SametypeofquestionsasthestandardSHLtest.Practicenumericaltestswithoutacalculator.(J.P.Morgan)Verbalreasoning:shorttextshadtosaywhetherstatementsweretrue,falseornotpossibletoanswer.Proofreading:hadtocompare2versionsoftextslookformistakes,describewhatkindsofmistakestheywere.German:shortconversationwithnativespeaker.(FidelityInvestments)Numerical,verbalandcurrentaffairs.Thiswasdonepriortotheinterviewdate.Don'ttakementalarithmeticforgranted.(UnitedBankforAfrica)

OthercomponentsNopresentation,justashortintroductionofourselvestorestofgroup.Wegotshownaroundtheoffices,sawthepeopleatwork,theytoldusaboutthejob.Wegotplentyoftea/coffeeandbiscuitsaswellasahugelunch.(FidelityInvestments)Presentationtotwointerviewers.Preparedforthepresentationindividuallyandpresentedittointerviewers.(BarclaysCapital)Weindividuallypreparedforthegroupexerciseandthenbroughtourcontributionsintoagroupdiscussion.(BarclaysCapital)GroupExercises.Wehadtoprioritiseimportanceofcertainitemsafterapretendplanecrashinthedesert,whereweweretheonlysurvivors,firstlyasindividuals,thenwehadtodoitasagroup.(FidelityInvestments)

TipsfromKentgraduatesThoroughlyresearchthecompanyandbepreparedforthemtodelveverydeeplyintotheanswersyou'vegiveninyourinitialapplication.Veryimpressed.Excellentoffices,veryintelligentandfriendlypeople.(J.P.Morgan)Verywelcomingatmosphere,fastpaced,andeverythingyouneedisunderoneroof24hr.fooddrycleanershairdressersgymetc.(MorganStanley)Don'tpanic.Beyourself.Dothoroughpreparationbeforeyourinterview.Thereisapositivecorrelationbetweenpreparationbeforeyourinterviewandyourchancesofsecuringajob.ThereisalotofinformationontheUniversity'sCareerswebsite.Makeuseofthisinformation.(BarclaysCapital)Theresnotreallyanywaytoprepareforitjustmakesureyoulistentothepresentationscarefully,butyoudontneedtoremembereverything.ThefirstthingtheyaskeveryoneiswhatdoyouknowaboutFidelity?Itsagoodideatomakesureyoucan



answerconfidently.(FidelityInvestments)YouhavetobereadyforsimplyanyquestionrelatingtoyourCVandcareer.(Citigroup)TheinterviewerswerelookingforaloopholeinyourCVsoI'dadvisethatyouknowyourCVverywell.Don'tputinyourCVwhatyoucannotdefendonthetable.Preparelotsofcompetencyanswers.Brushuponcommercialawarenessasquestionscanbeverytechnicalandhardifyoudon'tknowwhatyou'retalkingabout.(KBCFinancialMarkets)Berelaxed.KnowyourCVandexperienceswellenoughtotalkaboutthem.KnowGoldmanSachsi.e.culture,departments,recentknows.Haveafewquestionstoaskshowyourinterestandresearch.Verypositiveimpression.Keepuptodatewithgeneralnews.Rememberyouarebeinginterviewedassoonasyoustepinthebuilding.(GoldmanSachs)Relax!KnowyourCVwell!Knowaboutyourrolei.e.skillsrequired.KnowaboutGoldmanSachsi.e.whattheydoetc.(GoldmanSachs)KnowGoldmaninsideouttheirwebsite,whatbusinessareastheyworkin.BeabletotalkabouteveryaspectofyourCVandcoverletterandhavealotofexamplestogive.(GoldmanSachs)Thoroughlyresearchthecompanyandbepreparedforthemtodelveverydeeplyintotheanswersyou\'vegiveninyourinitialapplication.(J.P.Morgan)

CommentsTheinterviewerswerereallyniceandthishelpsonetorelax.IenjoyedtheentireinterviewexperienceawellstructuredAssessmentCentre.(BarclaysCapital)Itsaveryrelaxedlaidbackatmosphereandallthepeoplearereallynice.Theydontaskyoutodoanythingscaryandyourperformanceisjudgedasfarasallthedifferentexercisesareconcerned.Itwasactuallyveryenjoyableandagoodexperience.(FidelityInvestments)Alwaysshowconfidenceinyourselfwhetheryoufeelyou'llgetthejobornotbecausetherearesomeinterviewerswhowouldtrytobringdownyourmorale.(UnitedBankforAfrica)Nicecompanynotveryformal,peoplewereveryfriendly.(KBCFinancialMarkets)Veryimpressed.Excellentoffices,veryintelligentandfriendlypeople.(J.P.Morgan)

Morequestions(fromefinancialcareershttp://bit.ly/hnDKKS)Citigroup:Globalmarkets(internposition)

WhatisCiti'sbestareaintermsofitsGlobalMarketsbusiness?WhoisCiti'sCEO?Whatis21x19?

BarclaysCapital:Sales(internship)Whathastheeuro/poundexchangeratedoneinthelast6monthsandthenwhathasitdoneinthelastyear?Howdoinsurancecompaniesviewbonds?



WhatdoyouthinkwillhappentoIreland?

BarclaysWealth:Wealthmanagement(graduateprogramme)

Couldyoupleasementionsomeofthechallengesthattheprivatebankingworldiscurrentlyfacing?Whatareyourdevelopingareasbothprofesionnalyandpersonally?WhatdifferentiatesBarclaysWealthfromitscompetitors?Whatdoprivatebankersdo?WhatdoyouknowaboutBarclaysWealth?Speakaboutatimewhenyoufacedachallengingexperience.Whatdidyoudotoovercomeit?Whatwastheresult?Whatsetofskillsdoesaprivatebankerneed?

GoldmanSachs:Equityderivativesmarketing(offcycleinternship)

WhatisdifferentaboutGoldmanSachs?Whyareyouinterestedinderivatives?Whatdoyouthinkaboutourderivativeswebsite?WhichFinancialMediadoyoufollow?Whatismovingthemarketsinthemoment?Whichstructuredproductwouldyouissueinthecurrentmarketconditions?

Globalinvestmentresearch(graduateprogramme)Whyareyoubetterthanothercandidatesatpickingstocks?IfIgaveyou10millioneuro,wouldyoueitherbuya5starhotelinthecentreofParisor5cheapmotelsalongtheringroad?Whatisyourtoppick?

JPMorgan:Risk(graduateposition)Givemeanexampleofapersonyouthinkhasintegrityandexplainwhy.Givemeanexampleofapersonyouthinkiscredibleandexplainwhy.Whydoyouwanttoworkinriskwithinaninvestmentbankandnotacorporatebank,aninsurancecompanyetc.?What's1/16?Drawmeacalloption.What'stheanglebetweenthehourandminutehandswhenit's3.15pm?HowwouldyoupersuadeaGermanpensionertosaveSpain?

Lazard:Investmentbanking(graduateposition)WhyLazard?ExplainthefinancialcrisisCanyoutellmeaboutatimewhenyouhadadisappointingresult?Pleasedescribesomemethodsofvaluation?Whatwillcauseavaluationtoincrease?WhatmotivatesM&Aactivity?Canyoudiscussarecentnewsstory...

UBS:Equitiessalesandtrading(summerinternship)

Whenhaveyoushownleadership?



Whatis2.2^2?Talktomeaboutyourportfolioofshares.Whenareyougoingtosellsharex?Therearetenbottlesofpills.9havegoodpillsinthem,weighing10geachand1bottlehasbadpillsweighing9geach.Forargumentssakethereareaninfinitenumberofpillsineachbottle.Youalsohaveasetofelectricweighingscalesandyouareonlyallowedone'weigh'Howdoyoufindoutwhichbottlehasthebadpillsin?(Youhavetohaveonecombinationofpillstofindtheanswer,soyoucan'tputabunchonthescalesandthenkeeptakingthemoffonebyonetofindtherightanswer)

LINKSWikiJob.co.ukwww.wikijob.co.uk/wiki/Main_PageprovidesstudentsandgraduateswithkeyinformationaboutrecruitmentprocessesatinvestmentbanksandotherCityandfinancialemployers.InvestmentBankingJobInterviews:Tipsforsuccessandsampleinterviewquestionswww.blueskyinterviews.co.uk/int_art18.htmTheStudentRoom:discussionforumoninvestmentbanksinterviewquestionswww.thestudentroom.co.uk/showthread.php?t=262620TopBankingInterviewQuestionsfromOriginHRReadexamplesofthesortofquestionsinvestmentbanksaskatinterview,donatedbycandidateswho'vealreadybeenthroughtheprocessandseehowtheyansweredthem.http://tinyurl.com/cvtgb2oInvestmentBankingInterviewResourcesfromiBankingBlog:http://ibankingblog.com/investmentbankinginterviewresourcesAdviceoninterviewsfromLancasterUniversityInternationalInvestmentSocietywww.luiis.co.uk/careeradvice.interviews.phpInvestmentBankingCapitalMarketsClub

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Investment Banking Practice Interview

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