Investment Banking interview preparation
Every question below is either traced to a named firm from a public candidate report, or tagged at desk level when we could not trace it. Answers are written the way you would actually say them out loud — answer first, then the mechanism, then the limitation.
100 questions, mapped to the firms that asked them
- Questions
- 100
- Traced to a firm
- 100
- Firms
- 46
- Updated
- September 2026
050What makes a good IPO environment?MizuhoGeneralist · New York · 2026
Say this
Low volatility, rising or stable indices, recent IPOs trading above issue price, and sector multiples that let the issuer accept the price. The single best indicator is how the last three deals in the sector are trading.
Then walk it
- Volatility is the gating factor. The VIX above roughly 25 effectively closes the window, because you cannot price a book when investors cannot price risk two weeks out.
- Aftermarket performance of recent deals matters more than the index level. If the last few IPOs broke issue, investors will not show up for the next one at any sensible price.
- Valuation levels have to be acceptable to the seller. A sponsor will not float an asset at a discount to its own carrying mark; it will wait or sell privately instead.
- You also need a receptive institutional bid with cash to deploy, and ideally a cornerstone or anchor investor willing to be named in the book.
- And a full pipeline is self-reinforcing. Windows tend to open and shut for everyone at once, which is why banks rush to price in the same three weeks.
Where candidates lose it
Listing 'good market conditions' without naming an observable. Volatility level and how the last three deals traded are the two things an ECM banker actually looks at. Name them specifically.
Expect next
- Why do IPOs get priced at a discount to fair value?
- What is a greenshoe and why does it exist?
- Would you advise a client to IPO or sell to a sponsor right now?
Reported by candidates at Mizuho (Generalist, New York, 2026). Source: Wall Street Oasis.
Firm tags come from public, anonymous candidate reports on Wall Street Oasis: strong signal, not sworn testimony. Firms are named as the places a question was reported, not as partners of Fin Maverick. Answers are written for this page to show how to think out loud; they are not scripts to recite.