Technical Debt Capital Markets (DCM) Interview: questions you must be able to answer (2024)

FAQs

What do I need to know for a DCM interview? ›

You should also review your resume and practice standard interview questions to feel comfortable with the interview process. To further prepare for technical questions, review and understand financial statements, have a strong understanding of key industry terms, and practice calculating ratios.

Definition. The debt capital markets (DCM) department acts as an intermediary between issuers of public or private debt and market investors. In simple terms, it helps governments and companies to borrow money in the form of tradeable securities at the best possible terms.

You're really interested in DCM because you previously worked at a state government agency going through a budget crisis due to high debt levels and required interest payments, and now you want to see how debt financing works on the corporate side.

Investment banks employ DCM teams that are responsible for the origination, structuring, execution, and syndication of various debt-related products. DCM bankers are specialists brought in by the IBD coverage banker to help assist with clients on three key factors: Assessing the lenders' needs.

Pitching clients and potential clients on debt issuances and answering their questions. Executing debt issuances for clients. Responding to requests from other groups, updating market slides, and creating case studies of recent deals.

DCM Services is a third-party debt collection agency that focuses on estate debt. They go after unpaid bills of people who have died by contacting their relatives.

Debt Capital Markets vs.

In capital markets, companies that issue debt securities must pay it back with interest. On the other hand, in equity markets, companies issue shares, or small pieces of ownership in the company, for investors to buy.

The key difference is that DCM focuses on investment-grade debt issuances that are used for everyday purposes, while LevFin focuses on below-investment-grade issuances (“high-yield bonds” or “leveraged loans”) that are often used to fund control acquisitions, leveraged buyouts, and other transactions.

A: When answering, focus on your relevant skills, experience, and achievements that make you the best fit for the role.You should hire me because I am a hard worker who wants to help your company succeed. I have the skills and experience needed for the job, and I am eager to learn and grow with your team .

What are the technical questions for markets? ›

Technical/Markets Questions

What is one of your favourite stock picks and why? If you had to sell one stock short, which one would you pick and why? What industries are you interested in? How are companies in those industries valued?

Some tips to help you to answer deputy head interview questions: Try to tie-in examples of relevant skills when you can. The interviewer will have a checklist of skills and experience that they will be looking for. Cover any skills that you have seen mentioned in the job description with real-life examples.

Strategies for answering diversity questions

To prepare for interview questions on equity and inclusion, research the company's values and history to determine commonalities between your values and the company's, then create a list of questions you may hear.

Describe a situation in which you utilized your multicultural skills to solve a problem. Please provide an example of how you approached educating students about diversity, equity, or inclusion. Tell us about a time when you changed your style to work more effectively with a person from a different background.