2013 Investment Banking Interview Questions

Want an investment banking job?  Answer these questions first.

Working at an investment bank may not be as prestigious and high-paying as it was years ago, but competition remains fierce, for internship and full-time roles alike. Investment banks are famous for asking some of the most difficult or even weird interview questions you’ve ever heard.

Here’s some of the more interesting questions recently asked of M.B.A. graduates and prospective interns from New York University’s Leonard N. Stern School of Business.

Some questions may be simple and without a definite right/wrong answer.  If you had to answer these questions at an interview, be sure to demonstrate your logic of thinking and ability of analyzing.  Test your skills and post your answers in the comment section.

Don’t assume all questions are banking related.   

1. How do you think you’ll handle the hours? Tell me about a time you’ve worked overtime?
2. What does F9 do in Excel?
3. On a football field, how are the different valuation ranges going to show up?
4. If I were to ask your parents what they thought about you going into banking, what would they say?
5. In a regular market, what is more expensive debt or equity? Explain your thought process.
6. If the yield for a one-year bond is 10% and the yield for a two-year bond is 15%, what is the forward rate for the second year?
7. How do changes in interest rates impact duration?
8. Does company-specific risk impact Beta? Why or why not?
9. In a declining interest rate environment would you rather hold interest-only or principal-only?
10. Why is free cash flow called “free” cash flow? What does “free” signify? 

Need help to answer IB interview questions, check out the IIB website.  You can even sign up to gain instant access to A-grade sample banking resumes, mock interview transcripts and more.

Investment Banking Resume Template

Basic Investment Banking Resume Template

Here’s couple of basic resume templates for your one-click download.

Investment Banking Basic Resume Template - Junior

 

Investment Banking Basic Resume Template - Senior

Right click the link, click 'save target as'.  Save it to your desk top and click 'open'.

The Junior version is for entry level roles. 

The Senior version is for 3+ years of experiences. 

Why are these Templates Important to Investment Banking Job Seekers ?

These templates are adopted from the resume format that I use to present to my clients.  I work in the top tier executive search business and I charge high fee in placing senior investment bankers.  These templates are used by a real headhunter and demonstrate a professional look and feel in the real world.

These are not just templates and are well written resume samples tailored for investment banking.  I have stuffed in some re-written contents from real persons.  Learn to write your resume the way I wrote it.  

Download the templates immediately and replace with your personal particulars.  

Why are these templates different from others that you found over the internet ?

Because those are not investment banking resume templates.  As for IB, we have our own culture of resume writing. 

A Few Things to Note 

1. Please stick to the format as much as possible and replace content only.
2. Don’t assume you should provide a long education/qualification list.  You may have a long list, but only include those that could help you win the interview/offer. 
3. If you have a deal list, pick those most significant ones to include.  If you have deal lists on your resume, it would be acceptable if you go beyond one page.  Nevertheless, don’t make it longer than three pages. 

What if you don’t enjoy writing but in need of an impressive IB resume?

Well, in this case, you had no choice; get someone to write it for you.  But make sure to hire someone with ibanking experience.  IIB does not only write your resume, but has lots resources to help you break into investment banking.

Investment Banking Resume Template

How to Get an Investment Banking Job at J.P. Morgan

You’re just out of school and aiming to get a job at a top bank. Like most Wall Street operations, J.P. Morgan wants graduates with good grades, a strong GMAT score and applicable work experience. It also wants candidates with strong analytical skills who can think on their feet.

Here are some tips on how to nail down an investment banking job, directly from Joanna Lee, an investment banking MBA recruiter at J.P. Morgan.

What’s the best way to answer questions from the recruiter?
Present your answers in a short and compelling narrative. Briefly explain the background or situation; what action did you take and what was the outcome. If you are asked to assess a business situation, walk the interviewers through your thought process and how you arrive at that conclusion.

What mistakes do investment banking candidates make during an interview?
A common mistake among candidates is not being able to connect their past experiences and backgrounds to the role for which they are interviewing. As a candidate, it’s important to think through why you are a good fit for the role before walking into the interviewing room. Candidates should emphasize how they can add value to the firm and highlight the transferable skills that will help them succeed as an investment banker.

Are there cover letter and resume errors that often you see?
Keep your resume and cover letters to one page each. Avoid unexplained employment gaps, and/or a missing GMAT score on your resume since leaving details off your resume can raise questions. For example, if you took a year off to focus on other personal goals, you should include that experience in your resume.

What kind of questions should the interviewee ask the interviewer at the end?
Overall, a candidate should demonstrate a genuine interest in the firm, the group and the specific role. Asking about a group’s recent deal or next phase in the interview process reinforces an individual’s eagerness and enthusiasm. To keep the interviewer engaged, ask about their experiences at the firm. Be sure to ask for the interviewer’s contact information so you can follow up with a thank you note as another way to reiterate your interest.

How important are grades when assessing an investment banking candidate?
Academic excellence is an important factor in a candidate’s evaluation. However, we don’t focus solely on grades, especially since many business schools have grade nondisclosure policy. So we look for other qualities of academic excellence and achievements such as GMAT scores and Dean’s List recognition.

Tell us generally about your hiring plans. Any sectors you are targeting?
At J.P. Morgan, we continue to invest in our MBA investment banking summer internship as we fill most of our full-time positions from our Summer Associate class. Our summer program allows MBA candidates to gain first-hand experience early on in their career – challenging and meaningful work, access to senior management and clients, training and development programs and networking opportunities. Our program is designed to determine if the firm is a right fit for candidates and vice versa. If the fit is right, then Summer Associates are well positioned to be considered for our full-time associate program.

Source:  eFinancialCareers