HY analyst interview at top tier bank

Hi All, I am currently a L3 candidate and after many years of trying, I have managed to get an interview for a junior analyst position doing high yield research on the sell-side. I have worked in operations (buy-side firm) since graduating in 2004 and finally got this interview thanks to favorable recommendations from an analyst and PM I currently work with. I know that I will be meeting with 4 senior analysts and I expect the interviews to be pretty intense. I am of course preparing for all the standard interview questions and am reading up on the industry and credits that the analysts cover. Does anyone have any advice for me of what to expect or odd questions that I may not expect? Any help would be very much appreciated.

Just a random follow up question. I currently have a beard and several people have suggested I shave it because the bank i will be interviewing at is pretty conservative. However, i like my beard and many people have told me I look much better and more mature with it. Everything else about me (haircut and attire) is very conservative. Do beards really give a poor first impression?

I don’t think people care about beards one way or another. Knowledge of HY basics will be key. These were things I was asked during my first HY interview: Can you build a financial model? Can you build a forecast encompassing all three of the main FS? HY analysts spend more time analyzing working capital and liquidity than equity analysts. Are you familair with bond indendtures and credit agreements? Could you figure out the seniority of capital structure? Specifically related to those documents: Covenants, assets pledged as collateral, negative pledges, restricted payments baskets, excess cash flow sweeps Can you model any of these? Outside of that, you could have industry specific questions for the sector you could cover, basic bond math questions and then questions about. If I think of anything else, I’ll post it back.

Be yourself. Don’t cut it.

I had interviews for Portfolio Analyst positions at 2 buyside shops in high yield and general fixed income. I’ll preface this by saying I didn’t get either job due to lack of experience. But I was asked to construct the current yield curve, basic bond mechanics (duration, convexity, partial duration, etc.), stuff about MBS (why do MBS’s have a natural call option?), pitch me a stock (this isn’t necessarily a FI question, but practically all buyside interviews I’ve been on have asked for this). Other than technical stuff, which to me looks like you’ll be well-versed in by virtue of your prep and L3 candidacy, everyone says to be enthusiastic. One common thing I’ve heard FO people say is it’s not necessarily what you say, it’s how you say it. I assume that means act like you know what you’re talking about even if you really don’t? Anyway, good luck!

i say cut the beard… beards and pony tails should be outlawed if used for fashion. especially pony tails… what the hell hey? if its religious, then keep it.

I would agree that the junior level there is more focus on financial modeling but it does not stop there. I would add to account23 Practice recovery analysis. There is more focus on downside scenario these days. Refresh knowledge about convertibility. Know the definition of duration. Many of our interviewees fail this simple question. :slight_smile:

Or you can keep a big mustache.

haha i have a beard too and am going to rock it for a thursday interview

How did it go?

accountant23 Wrote: ------------------------------------------------------- > How did it go? and, did you keep the beard?