December 19th, 2003, 2:42 pm
QuoteOriginally posted by: slickThe interview is very soon! The experience is aimed at someone with 1-2 years post uni experience, with a good understanding (why am I been considered?) of how they can hedge a range of fixed income investments (useing low risk T-bonds and commercial papers - all AAA etc....so completely risk adverse). Also, working heavily between investors and brokers and promoting ideas...Any advice?? I'm talking major soon...Cheers!I could see them asking you, for example, how many eurodollar futures would you need to hedge a $1mm bond position with risk of $725 per million.I've always found that these types of question that check your understanding about how to hedge something with futures, options, or some other primative securities or proxies, is a good way to show off your understanding hedging. Since you'll be working with governments it all starts with the financing book or repo book, so be prepared to discuss funding issues as well as hedging.
Last edited by skeptible on December 18th, 2003, 11:00 pm, edited 1 time in total.