So I am interviewing for a position as a muni analyst at a large investment management firm. I have already had a couple of interviews, and I now have a “credit test” scheduled. I have been told I will be given about an hour to analyze a case, and then another hour to answer questions, explain what I think about the case. My hunch is that I will be asked to analyze a general obligation offering, but I am not sure. Keep in mind that this is an entry level analyst position, and I dont think they are expecting expert analysis. Does anyone on here have any experience with tests like this? If so, how would you suggest preparing/ what are they looking to hear?
Hows your FICO score? … just saying…
see this for starters. also review CFA L2 material. I think this was on there. http://www.gfoa.org/downloads/GFRDeterminantsofCreditQua.pdf for GO bonds, credit quality of the issuer is very important. see this too http://books.google.com/books?id=scjZDOQg-04C&pg=PA205&lpg=PA205&dq=credit+analysis+of+general+obligation&source=bl&ots=MOc23BFzTE&sig=mzDpbD1MpAWxjrY7Xt1urHo216A&hl=en&ei=514aTISYFcKqlAeFnJyBCg&sa=X&oi=book_result&ct=result&resnum=4&ved=0CBoQ6AEwAzgK#v=onepage&q=credit%20analysis%20of%20general%20obligation&f=false I am almost certain there were examples on L2 on how to analyze issuer interest coverage ratios and so on.
I would focus on what the holdings are in the portfolios you would be an analyst for. That would be smart.
If you have the CFA or Test Prep provider books for level 1&2 go over the Credit Anaysis sections. Also, in Level 2 they briefly cover Muni’s. Do some research on typical calc’s and covenants on a Muni deal.
Doubledip…thanks for the resources. I think these highlight some good points to bring up during my test. I appreciate the help!
glad to help, and best of luck!