Technical Debt Capital Markets (DCM) Interview: questions you must be able to answer

Have a technical interview lined up with Debt Capital Markets (DCM)? Then make sure you can answer each of the below questions competently. Your job depends on it!

1.    Describe four key differences between debt and equity.

2.    What is leverage?

3.    Why might a bond sell at a discount to par?

4.    What’s the difference between the clean price and the dirty price of a bond?

5.    What is credit risk?

6.    What’s a callable bond?

7.    What is a yield curve?

8.    Can you explain the shape of the yield curve?

9.    What is an FX forward?

10. What are options?

11. You’re running a US company but have issued a GBP bond:

• a.    Why might you do that?
• b.    What is the main risk you are exposed to?
• c.     How would you cover that risk?

Book a mock interview to ace that interview!

Best of luck!!

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