Toughest Invest Banking Interview Questions #2

  1. What will influence the price of residential mortgage-backed security?

  2. Can you produce a forward FX model for GBP/USD?

  3. Tell me how you calculate the delta of an option without using the precise formula for delta? How?

  4. Explain a credit default swap with examples?

  5. What recent announcement in the news may affect the bank's activities?

  6. What are the risks of waiting for the next year before raising the interest rates substantially in the US?

  7. You are using multiples to value a company but those multiples are skewed. How will you rectify?

  8. Explain to me about Minority Interest and why do we add it in the Enterprise Value formula?

  9. Tell me why is cash subtracted from Enterprise Value (EV)?

  10. Briefly walk me through a discounted cash flow analysis (including WACC and IRR)

  11. Suppose a company raises debt from a bank , what happens to its WACC?

  12. A client who works in the aerospace industry wants to know about related markets which are impacting his stock price. Which industries and markets do you look at?

  13. Tell me why can't I use EV/Earnings or Price/EBITDA as valuation metrics?

  14. Tell me a piece of news related to any kind of deal you have read or heard recently?

  15. How do the three financial statements fit together?

  16. Tell me which is the best method to value a company and why?

  17. Why would you or would you not invest in penny stock?

  18. How will Joe Biden's policies affect the stock market and M&A climate?

  19. Where are the 1-year, 5-year, and 10- year US Treasury yields?

  20. Would you invest in real estate now and why?

  21. What do you think is going to happen with interest rates over the next six to twelve months?

  22. What has the market been doing? Why? What do you think it will do in the coming 12 months? Explain your view?

  23. Tell me about some stocks to buy and Why should I buy them?

  24. What does the yield curve look like now?

  25. What are the main major factors driving M&A in your sector? How do you see them evolving in the next year?

  26. Where is the equities market going?

  27. What's happening with the oil market? How will this impact other markets?

  28. What happens when the Fed starts increasing interest rates?

  29. Tell me about what's happening to the global economy and what is impact you see in the markets

  30. What do you mean by Quantitative Easing What happens to the markets for equities, rates, and credit and why?

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