What questions are asked in a capital market interview?

6 capital market interview questions with sample answers

• What is net present value?
• Which cost is higher: debt or equity?
• What does WACC stand for?
• What is monetary policy?
• Can a company make public issue of equity shares if it’s not fully paid up on any of their partly paid shares?

What do I need to know for a capital market interview?

The interview wants to know how much you are informed about the capital market and whether you understand the job roles. List out the responsibilities associated with the career. “A professional in capital market must have thorough knowledge about the present condition of the stock market.

What do you do in debt capital markets?

Debt Capital Markets (DCM) groups are responsible for providing advice directly to corporate issuers on the raising of debt for acquisitions, refinancing of existing debt, or restructuring of existing debt.

What do I need to know for a DCM interview?

In DCM interviews, you’ll need to know about balance sheets, bond valuations and seniority. If you’re interviewing for a junior DCM job, you’ll need to be wholly comfortable with the concepts of duration, valuation, convexity, spreads, the interest coverage ratio and the leverage coverage ratio.

Is debt capital markets investment banking?

Debt Capital Markets (DCM) is part of the Global Corporate and Investment Banking Division (GCIB) at Bank of America (BofA). DCM professionals originate, structure, risk manage and execute debt products, including bonds (across public and private markets), loans and acquisition finance.

What is capital market simple words?

Capital market is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and institutions. Capital market trades mostly in long-term securities.

What questions do they ask at DCM interview?

There are a few key things you should focus on when preparing for an interview with a DCM group. TheAxe – Investment Banking Analyst: Know what is going on with interest rates….Decided to Pursue a Wall Street Career? Learn How to Network like a Master.

• What is Debt Capital Markets?
• What is a Yield Curve?
• What is a Bond?

Is DCM a good career?

DCM itself is considered a good long-term career option. Consider the sheer volume of the global debt market – there are opportunities in every country, both public sector and private, as well as every sector of the industry.

Why are you interested in DCM?

DCM is extremely interesting because you get to interact with clients from the start. If you look at M&A, it may take a while before you start interacting with the CFOs or CEOs of the companies you work with.

What is the debt market meaning?

Debt market is where investors buy and sell debt securities, mostly in the form of bonds. Debt market in India is one of the largest in Asia.

What are the 3 types of capital market?

Capital market is a broad term used to describe the in-person and digital spaces in which various entities trade different types of financial instruments. These venues may include the stock market, the bond market, and the currency and foreign exchange markets.

Why is debt capital markets interesting?

Does DCM pay well?

DCM bankers receive pretty much the same base salaries at all seniority levels as those in ECM and M&A, according to figures from executive search firm Options Group. First and second-year associates earn $100k-$125k and if you make it to MD your pay can reach up to $600k.

Why do I want to work in capital markets?

Capital markets include the stock market and the bond market. They help people with ideas become entrepreneurs and help small businesses grow into big companies. They also give folks like you and me opportunities to save and invest for our futures.

What is the role of debt market?

The debt market allows government to raise money to finance the development activities of the government. It plays an important role in efficient mobilization and allocation of resources in the economy.

What are the two types of debt market?

Types Of Debt Market There are primarily two types of debt markets, primary and secondary markets.

What are debt instruments?

Debt instruments are tools an individual, government entity, or business entity can utilize for the purpose of obtaining capital. Debt instruments provide capital to an entity that promises to repay the capital over time. Credit cards, credit lines, loans, and bonds can all be types of debt instruments.

Is DCM under investment banking?

Similar to its counterpart, Equity Capital Markets, Debt Capital Markets is a cross between sales & trading and investment banking.

Why are you interested in this position?

“I see this opportunity as a way to contribute to an exciting/forward-thinking/fast-moving company/industry, and I feel I can do so by/with my … ” “I feel my skills are particularly well-suited to this position because … ” “I believe I have the type of knowledge to succeed in this role and at the company because … ”

What is the advantage of debt market?

Advantages of Debt Market The best advantage of the debt market is that it guarantees returns. The risk associated with it is less, making it a popular choice of investors. The debt market instruments can be a good source of fixed income. The liquidity of the debt market is comparatively high.

What is the interview process like for a career in capital market?

The interview wants to know how much you are informed about the capital market and whether you understand the job roles. List out the responsibilities associated with the career. “A professional in capital market must have thorough knowledge about the present condition of the stock market.

What are debt capital markets and why invest in them?

These markets are also used by companies to finance themselves through debt, which helps diversify their funding. Why Invest in Debt Capital Markets? Debt securities provide an income stream (hence the name “fixed-income”) as well as capital preservation (in most cases) for investors.

What is the difference between the debt capital market and advisory?

Meanwhile, though the nature of advisory resembles the leverage group with originating, structuring and executing bond engagements for clients, the difference here is the Debt Capital Market tends to work on Investment-grade bonds. The Investment-grade issuance is commonly deployed to fund business activities of the corporates.

What are debt capital markets (DCM)?

Debt capital markets (DCM), also known as fixed-income markets, are a low risk, capital market where investors are lenders to a company in exchange for debt securities. These markets are also used by companies to finance themselves through debt, which helps diversify their funding.