14 questions reported in Deutsche Bank interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Carry, curve shape, storage economics and policy sensitivity. 3 questions
Sales and trading interviews use a client order to test quote direction, execution and risk awareness.
A dealer quotes USD/JPY at 149.80 / 149.84. A client wants to buy $20m against yen immediately. At what rate do you trade, and what risk does the dealer have after filling the order?
An FX operations-aware first round checks whether a candidate understands that execution is not complete when a trade is agreed.
A bank sells €25m for dollars to a counterparty for value tomorrow. What is FX settlement risk, and how does payment-versus-payment settlement reduce it?
An FX-options interview uses this to test whether you understand how option risk becomes spot risk on a dealer book.
A dealer sells a client a EUR/USD call with a delta of 0.40 on €10m notional. How should the dealer initially hedge the spot exposure, and what changes if EUR/USD rises?
Greeks, skew, hedging costs and payoff construction. 2 questions
Asked in markets interviews to see whether a candidate recognises that a profitable trade can still create credit exposure.
Two companies enter an over-the-counter FX forward. Six months later it has a $4m positive mark-to-market for Company A. What counterparty risk does Company A face, how does collateral reduce it, and…
A sales-and-trading first round checks whether a candidate can convert a foreign-currency liability into the client's functional currency.
A US company issues a five-year EUR 100m bond because euro funding is attractive, but it earns almost all of its cash flow in US dollars. Explain how a cross-currency swap can change the company's…
Duration, curve trades, auctions, basis and central bank reaction. 2 questions
A practical rates-interview prompt on how traders read the market's central-bank expectations.
What is an overnight indexed swap (OIS), and why does a rates trader use it to discuss expected central-bank policy?
A desk-style risk question testing whether a candidate sizes a hedge by rate sensitivity instead of by headline notional.
A client buys a Treasury portfolio with a DV01 of +$175,100: it gains $175,100 if yields fall 1bp and loses the same amount if they rise 1bp. A Treasury futures contract has a DV01 of +$85 when you…
Recurring revenue quality, Rule of 40, retention and growth-adjusted multiples. 2 questions
Cloud computing has transformed IT economics. This tests understanding of the shift to cloud.
What are the economics of cloud computing, and how does the shift from on-premise to cloud affect software companies and their customers?
Semiconductors are highly cyclical. This tests understanding of the chip industry dynamics.
What drives semiconductor cycles, and how do you assess where we are in the cycle? How does this affect valuation?
Ratings, spreads, tenor and covenant packages, and pricing a new issue. 2 questions
Tests whether you understand that the two markets are structurally different, not just differently priced.
How does issuing high yield differ from issuing investment grade. Beyond the fact that the coupon is higher?
A live DCM execution judgement test: the desk needs a pricing recommendation, not a description of book-building.
A BBB+ issuer is marketing $1.0 billion of 10-year notes at initial price thoughts of Treasury +165 to +170 bps. Two hours later, the book shows $4.0 billion of demand. However, one hedge fund…
Driver-based models, differentiated estimates and defending a rating. 1 question
A common interview question for candidates expected to explain ratings and valuation to clients.
A stock trades at $40. Your forecast is $3.00 of next-year EPS and you believe 18x is the appropriate forward P/E multiple. Set a price target and explain what else belongs in the recommendation.
Merger models, accretion/dilution, purchase accounting and deal judgement. 1 question
The interviewer is checking whether you understand what your DCF actually values.
Define unlevered and levered free cash flow. Which do you use in a DCF, what discount rate pairs with each, and what does each produce?
Stochastic calculus, VaR and expected shortfall, and model limitations. 1 question
A market-risk interview often tests whether you can diagnose a model exception without overreacting to one data point.
A desk's 99% one-day VaR is breached six times over 250 trading days. How do you interpret that result and investigate it?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Deutsche Bank.