I have to interview for a FI position. It entails monitoring credit risk, conducting credit reviews for FI portfolios, and providing FI commentary. Can those in FI please give me some insight into what I should expect from the interview? Also, I would like to know more about what a FI analyst does on a day to day basis.
As a start you might hit the agencies’ (s&p, moodys, fitch) sites to see if they have white papers detailing their corporate ratings methodologies. (I know they have these online, but not sure whether the content is avail without a subscription.) e.g. http://www2.standardandpoors.com/spf/pdf/fixedincome/methodology.pdf
Learn everything related to the yield…Current T-bond rate, yield of the bonds issued by some large institutions like GM, Ford etc., how rating of the tranches deceided by rating agencies, learn basic formulas for accounting ratios like Cash ratio, Quick ratio etc. good luck.
im in equity, but if you have a week before the interview, skim a fabiozzi book. Level 2 fixed income is hot, read that if you are a 2 candidate
More broadly, as opposed to equity research, a fixed income analyst will be more focused on the broader trends of a business and industry and how those trends affect a business use of leverage, cash flow generating ability, etc. An equity analyst is going to be more focussed on a quarter-to-quarter basis and more narrowly defined metrics like P/E, etc. Be prepared to talk about the CDS market, that’s a hot issue and a very common reference for relative value. I would definitely talk about current topics like the CP market being frozen by money market fund issues, spreads at historical wides, etc.
BOMC Wrote: ------------------------------------------------------- > I would definitely talk about current topics like > the CP market being frozen by money market fund > issues, spreads at historical wides, etc. LIBOR/fed funds rate spread and TED spread, those seem to be hot topics
BOMC Wrote: ------------------------------------------------------- > I would definitely talk about current topics like > the CP market being frozen by money market fund > issues, spreads at historical wides, etc. LIBOR/fed funds rate spread and TED spread, those seem to be hot topics