Investment Banking interview preparation

Questions

100

Traced to a firm

100

Firms

46

Updated

September 2026

Asked at

All firmsTSTruist Securities10Rothschild & Co8Centerview Partners7CSCredit Suisse7HWHarris Williams6Houlihan Lokey6Lazard6Mizuho6Barclays5Citi5Deutsche Bank5Evercore5Moelis & Company5MSMorgan Stanley5Piper Sandler5RCRBC Capital Markets5Goldman Sachs4Nomura4TD Securities4Bank of America3GSGuggenheim Securities3J.P. Morgan3Jefferies3Moody's3Perella Weinberg Partners3WPWarburg Pincus3WBWilliam Blair3HSBC2Lincoln International2Scotiabank2TPTPG2UBS2Wells Fargo Securities2Advent International1Apollo Global Management1Bain Capital1Balyasny Asset Management1BLBlackRock1BPBNP Paribas1General Atlantic1Invesco1Morningstar1PIMCO1STSociété Générale1SSState Street1WMWellington Management1

Topic

All topicsAccounting14Valuation21M&A10Markets and deals10Capital markets3LBO8Leveraged finance3Restructuring2Credit3Debt capital markets2Capital structure2Case and estimation11Brainteasers6Fit5

Level

AnyCoreIntermediateHard

Type

AnyTechnicalCaseBrainteaserFitMarket view

1. 067Walk me through the syndication process.Debt capital marketsIntermediatetechnicalScotiabankDebt Capital Markets · New York · 2026

   Say this

   The arranging bank commits to the borrower, then sells the loan down to other lenders. Underwrite and mandate, prepare the information memorandum and ratings, launch to a lender group, build the book, then allocate, close and fund.

   Then walk it

   1. Mandate and structure: the bank agrees the terms and either underwrites, meaning it guarantees the full amount and takes the risk of selling it, or arranges on a best-efforts basis.
   2. Preparation: build the information memorandum and the model, get ratings from the agencies if it is a rated deal, and agree the credit agreement terms with the borrower.
   3. Launch: a bank meeting or lender call presents the credit. Then a commitment period, usually one to two weeks, during which institutional investors submit orders at a price.
   4. Price discovery and flex: if the book is undersubscribed the arranger uses flex language to widen pricing or tighten terms. If it is oversubscribed they tighten. This is the part that makes underwriting risky.
   5. Allocation, documentation, closing and funding. Then the paper trades in the secondary market, which is where the loan's price is discovered from then on.
   6. The risk that matters commercially: in an underwritten deal, if the market gaps between commitment and syndication, the bank is left holding paper it has to sell at a loss. That is hung debt, and it is why underwriting fees exist.

   Where candidates lose it

   Describing it as a simple sequence and missing flex and underwriting risk. The commercial substance of syndication is who bears the market risk between commitment and sell-down. Name flex language and hung debt.

   Expect next

   • Tell me about the two different types of loans in the broadly syndicated loan market.
   • What is market flex?
   • What happens if the deal does not clear?

   Reported by candidates at Scotiabank (Debt Capital Markets, New York, 2026). Source: Wall Street Oasis.

2. 069Explain the different ways a firm might finance itself, besides straight equity and debt.Capital structureIntermediatetechnicalHSBCGeneralist · New York · 2024TSTruist SecuritiesCorporate Banking · Atlanta · 2025

   Say this

   Everything in between: convertible bonds, preferred stock, mezzanine and PIK, plus asset-based routes like securitisation, sale-leaseback, factoring and equipment leasing. And structural options like a rights issue or a convertible preferred.

   Then walk it

   1. Hybrid instruments sit between the two: convertible bonds give a low coupon in exchange for equity upside, preferred stock ranks ahead of common with a fixed dividend, and mezzanine or PIK sits below senior debt with equity warrants attached.
   2. Asset-based financing monetises specific assets rather than the whole enterprise: asset-backed lending against receivables and inventory, securitisation of a receivables pool, factoring, and equipment leasing.
   3. Sale-leaseback converts owned real estate into cash while keeping the operational use. It is off-balance-sheet in spirit, though under current standards the lease liability comes back on.
   4. Operational financing is often overlooked: stretching supplier terms, customer prepayments and deferred revenue are all working capital funding, and they cost nothing.
   5. And there are equity variants: rights issues to existing holders, PIPEs, convertible preferred for a strategic investor, and in some markets government or development-bank funding for specific projects.
   6. The structuring logic is to match the funding to the asset. Long-lived assets get long-dated debt, receivables get revolving asset-based facilities, and uncertain growth gets equity or something convertible.

   Where candidates lose it

   Listing instruments with no organising principle. Group them, hybrids, asset-based, operational, equity variants, and finish with the matching principle. A list without a frame reads like flashcards.

   Expect next

   • When would you advise a convertible over straight equity?
   • What are the primary categories of collateral securing an asset-based loan?
   • What is the difference between a loan and a bond?

   Reported by candidates at HSBC (Generalist, New York, 2024); Truist Securities (Corporate Banking, Atlanta, 2025). Source: Wall Street Oasis.

3. 070What happens to EPS if a company issues debt to buy back shares?Capital structureIntermediatetechnicalDeutsche BankInvestment Banking · San Francisco · 2025

   Say this

   EPS usually rises, because the share count falls faster than net income does. It is accretive as long as the after-tax cost of the new debt is below the earnings yield of the stock you are buying.

   Then walk it

   1. Net income falls by the after-tax interest on the new debt. Share count falls by the shares repurchased. EPS is the ratio, so the direction depends on which falls proportionally more.
   2. The test: compare the after-tax cost of debt to the stock's earnings yield, which is the inverse of its P/E. Debt at 6 percent pre-tax is 4.5 percent after tax. A stock at 15 times P/E has a 6.7 percent earnings yield. Accretive.
   3. Flip it: a stock at 30 times P/E has a 3.3 percent earnings yield, below the 4.5 percent after-tax cost. Dilutive. Which is why expensive stocks should issue equity, not buy it back.
   4. Say the number to prove you can do it: $1,000 of debt at 6 percent costs $45 after tax at a 25 percent rate. If that buys 100 shares out of 1,000 and net income was $100, EPS goes from $0.10 to $55 over 900 shares, which is $0.061. Dilutive in that case, and the arithmetic tells you immediately.
   5. Then the value point: higher EPS does not mean more value. You have raised leverage, so the equity is riskier and the multiple should compress. Rearranging the capital structure does not create value on its own.

   Where candidates lose it

   Answering 'EPS goes up' with no condition. It depends entirely on the relationship between the cost of debt and the earnings yield. And stopping at EPS without noting that the multiple should fall as leverage rises.

   Expect next

   • So when is a buyback value-destructive?
   • What are the different ways to use excess cash?
   • How does this change the company's WACC?

   Reported by candidates at Deutsche Bank (Investment Banking, San Francisco, 2025). Source: Wall Street Oasis.

4. 071What is happening in the US economy right now?Markets and dealsIntermediatephone / HireVueJ.P. MorganPrivate Banking · Charlotte · 2026TSTruist SecuritiesRisk Management · Charlotte · 2026CitiGeneralist · London · 2026

   Say this

   Answer with a structure rather than a list of headlines: growth, inflation, the labour market, then what the central bank is doing about it, then what that means for your desk. Four numbers and one implication.

   Then walk it

   1. Know four figures cold on the morning of your interview: GDP growth, headline and core inflation, the unemployment rate, and the policy rate. Say them with the vintage, as in 'core PCE ran at X in the latest print'.
   2. Then the tension. There is almost always one: inflation sticky while the labour market softens, or growth resilient while rates stay restrictive. Naming the tension is what makes it analysis instead of recitation.
   3. Then the policy read: what the market is pricing for the next two or three meetings, and what would change it.
   4. Then bring it back to the seat. Something like: for M&A, a lower path for rates lowers the sponsor's cost of debt, which supports higher entry multiples and should reopen the large-cap LBO pipeline.
   5. Keep it to ninety seconds. This question tests preparation and judgement about relevance, not breadth.

   Where candidates lose it

   Reciting headlines with no numbers, or numbers with no implication for banking. Also, opinions about politics. Stay on the transmission mechanism from macro to your desk, and check your figures the morning of the interview because a stale print is worse than none.

   Expect next

   • How is that affecting the M&A market?
   • Describe Jerome Powell's tenure.
   • Where did the S&P 500 close last night?

   Reported by candidates at J.P. Morgan (Private Banking, Charlotte, 2026); Truist Securities (Risk Management, Charlotte, 2026); Citi (Generalist, London, 2026). Source: Wall Street Oasis.

5. 074What is the biggest challenge facing banks today?Markets and dealsIntermediatetechnicalRCRBC Capital MarketsInvestment Banking · London · 2025UBSPrivate Wealth Management · New York · 2026

   Say this

   Pick one and defend it rather than listing five. I would argue disintermediation: private credit has taken a large share of leveraged lending, and the balance sheet advantage banks used to have is worth less than it was.

   Then walk it

   1. The structural version: private credit funds now hold loans banks used to underwrite and syndicate. That removes fee income and weakens the cross-sell that won advisory mandates.
   2. Regulation compounds it. Capital rules make balance-sheet lending expensive for banks and do not apply to the funds competing with them, so the business migrates to where the capital is cheapest.
   3. Then the cyclical layer: deposit costs and the funding mix. The 2023 regional bank failures showed how quickly deposits move when rates rise and how unhedged duration in the securities book can be fatal.
   4. Then technology and cost: legacy systems, payments competition from fintech, and now the cost of building AI infrastructure while the payoff is unproven.
   5. But I would come back to the one point: banks are being squeezed out of the middle. The answer they want is a view, held with a reason, not a survey.

   Where candidates lose it

   Listing regulation, technology, competition and cyber in one breath with no argument. The question is an invitation to have an opinion. Pick the one you can defend, make the case in three sentences, then acknowledge the strongest counterargument.

   Expect next

   • Why has private credit taken share?
   • What should banks do about it?
   • How does that affect the division you are applying to?

   Reported by candidates at RBC Capital Markets (Investment Banking, London, 2025); UBS (Private Wealth Management, New York, 2026). Source: Wall Street Oasis.

6. 076Pitch me a stock to buy and one to sell.Markets and dealsIntermediatetechnicalBank of AmericaInvestment Banking · New York · 2023MSMorgan StanleySales and Trading · Tokyo · 2025Balyasny Asset ManagementEquity Hedge · New York · 2020

   Say this

   Lead with the recommendation and the target, then give the variant view, then the catalyst, then the risk. Ninety seconds. The variant view is the whole pitch: what do you believe that the market does not?

   Then walk it

   1. One sentence: 'I would buy X at its current level with a target of Y, about 30 percent upside over 12 months.'
   2. Then the business in two sentences, so the interviewer knows you understand what it actually sells.
   3. Then the variant view, which is the only part that matters. 'Consensus models margin flat; I think it expands 200 basis points because the pricing taken last year has not annualised yet.' No variant view means no pitch.
   4. Then the catalyst and the timeline. What event makes the market agree with you, and when.
   5. Then the two biggest risks and what would make you exit. And on the short side, be rigorous: a short thesis needs a catalyst and a borrow cost, because 'it is expensive' is not a thesis.
   6. Know the numbers behind it: revenue growth, margin, multiple, and roughly what the market values it at.

   Where candidates lose it

   Pitching a mega-cap that everyone covers, with a thesis that is just the consensus narrative. If your reason is the reason in the newspaper, there is no edge. And never pitch something you cannot defend on valuation.

   Expect next

   • What would make you change your mind?
   • Are you sure your thesis can be backed up? What if their costs do not fall?
   • How would you hedge this name?

   Reported by candidates at Bank of America (Investment Banking, New York, 2023); Morgan Stanley (Sales and Trading, Tokyo, 2025); Balyasny Asset Management (Equity Hedge, New York, 2020). Source: Wall Street Oasis.

7. 078Tell me a piece of recent news and how it affects this bank.Markets and dealsIntermediatetechnicalRCRBC Capital MarketsInvestment Banking · London · 2026BLBlackRockAsset Management · Tokyo · 2026Deutsche BankGeneralist · New York · 2026

   Say this

   Pick something with a direct line to their revenue, not a general headline. Then trace the chain: event, effect on a market they operate in, effect on a specific business line of theirs.

   Then walk it

   1. Choose deliberately. A deal in their strongest sector, a regulatory change in their home market, or a competitor's result that reveals something about their position.
   2. State the fact precisely, with the number. Vagueness here is fatal because it suggests you skimmed a headline.
   3. Then the chain. For example: a large take-private in their coverage sector signals that sponsors are back in large-cap deals, which flows to their leveraged finance and sponsor coverage revenue, and they have a strong franchise there.
   4. Then say something specific about the firm that proves you researched it: a mandate they ran, a league table position, a business they recently built or exited.
   5. Close with why it matters to you: the growth area you want to work in. That converts a market question into a 'why this firm' answer, which is what it really is.

   Where candidates lose it

   Bringing a headline with no connection to their business, or one they will know better than you and can immediately correct. Pick something in their sector, know the number, and rehearse the three-step chain.

   Expect next

   • Why does that matter for the division you applied to?
   • Which of our competitors benefits more?
   • What else have you been reading?

   Reported by candidates at RBC Capital Markets (Investment Banking, London, 2026); BlackRock (Asset Management, Tokyo, 2026); Deutsche Bank (Generalist, New York, 2026). Source: Wall Street Oasis.

8. 079How would you value your school's most popular food truck, and what assumptions would you make?Case and estimationIntermediatetechnicalCitiInvestment Banking · New York · 2026

   Say this

   Build up the revenue from observable inputs, estimate margin, then apply a multiple appropriate to a tiny owner-operated business. Say every assumption out loud and keep the numbers round.

   Then walk it

   1. Revenue: it serves maybe 150 customers a day at an average ticket of $12, so about $1,800 a day. Open 300 days a year, so roughly $540,000 of annual revenue.
   2. Costs: food cost around 30 percent, one or two staff plus the owner at maybe $80,000 total, then permits, fuel, maintenance and the truck payment. Call it $120,000 of operating profit before the owner's own wage.
   3. Normalise for owner compensation, which is the step people skip. If the owner is working full time, you must charge a market salary, say $50,000, leaving about $70,000 of real EBITDA.
   4. Multiple: this is a tiny business with total key-person dependency, no contracts, and a licence that may not transfer. Two to three times EBITDA, so $140,000 to $210,000.
   5. Then the cross-checks: the replacement cost of a used truck and equipment is maybe $60,000 to $100,000, which sets a floor. And the location permit may be the single most valuable asset, in which case you are really valuing the licence, not the business.

   Where candidates lose it

   Applying a public-market multiple to a food truck. Small, owner-dependent businesses trade at two to four times EBITDA, not ten. And forgetting to charge for the owner's labour, which overstates EBITDA enormously in any small business case.

   Expect next

   • What if the permit is not transferable?
   • How would you value an apple tree?
   • What would make you pay more than replacement cost?

   Reported by candidates at Citi (Investment Banking, New York, 2026). Source: Wall Street Oasis.

9. 080How do you value an apple tree?Case and estimationIntermediatetechnicalLincoln InternationalValuation · New York · 2023Rothschild & CoGeneralist · New York · 2026

   Say this

   As a finite-life cash-generating asset. Forecast the fruit it yields each year, price it, subtract the cost of harvesting, discount over the tree's productive life, and add any terminal value for the land or the timber.

   Then walk it

   1. Cash flows: say 200 kilos of apples a year at a dollar a kilo, so $200 of revenue, less picking, water and treatment of maybe $80. Call it $120 a year.
   2. Shape the life curve. A young tree yields little, a mature tree plateaus, an old tree declines. So this is not a flat annuity; it ramps, plateaus for twenty or thirty years, then falls away.
   3. No perpetuity, because the tree dies. Forecast to the end of the productive life and add salvage, which is the firewood or the cleared land.
   4. Discount rate: this is a risky agricultural cash flow exposed to weather, disease and commodity price. Something well into double digits.
   5. Then the three cross-checks that make it a valuation answer rather than an arithmetic one. Market: what do orchards sell for per tree or per acre? Replacement: what does it cost to buy and grow a sapling to maturity, including the years of no yield? And the option value: if the land under it is worth more as building plots, the tree is worth negative, because you would pay to remove it. That last point is the answer they are listening for.

   Where candidates lose it

   Treating it as a perpetuity. It is a finite-life asset, which is the whole reason the question gets asked. And missing that the highest-value use might be cutting it down, which is the insight that the asset's value depends on the alternative use of what it sits on.

   Expect next

   • What if the land is worth more as development?
   • How does this differ from valuing a mine?
   • What discount rate would you use?

   Reported by candidates at Lincoln International (Valuation, New York, 2023); Rothschild & Co (Generalist, New York, 2026). Source: Wall Street Oasis.

10. 081How would you value your favourite animal?Case and estimationIntermediatesuperdayRothschild & CoGeneralist · New York · 2026

    Say this

    Pick an animal with an obvious cash flow so the question becomes tractable. A racehorse: value it on prize money, breeding fees and resale, less training and stabling costs, discounted over its career.

    Then walk it

    1. Choose the animal strategically. A racehorse, a dairy cow or a breeding bull all have identifiable revenue. A panda does not, and you will spend the whole answer fighting your own example.
    2. For a racehorse: expected prize money, weighted by the probability of winning at each grade, plus stud fees after retirement, which for a successful stallion dwarf the racing income.
    3. Costs: training fees, stabling, vet, insurance, jockey and entry fees. These are substantial and largely fixed, so most horses are value-destructive.
    4. Finite life with a terminal value: the residual breeding or resale value at the end of the racing career.
    5. Then the honest framing, which is the point of the question: the expected value is the probability-weighted average of a few enormous outcomes and many zeros. It is an option, not an annuity, so the way to value it is scenario-weighted, and the market price of a yearling at auction is your best cross-check.

    Where candidates lose it

    Freezing on the absurdity, or picking an animal with no cash flow and then trying to force a DCF onto it. Reframe the question as 'value any finite-life risky asset', choose an example that cooperates, and name your framework before you touch any number.

    Expect next

    • What is your personal beta?
    • How would you value a business with the same payoff shape?
    • How would you cross-check your number?

    Reported by candidates at Rothschild & Co (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.