BNY Interview Questions, Process, and Tips

Q1. What is trade life cycle
Ans. 
Trade life cycle refers to the stages involved in a trade from initiation to settlement.
• Trade initiation - Trade is proposed and agreed upon by parties involved.

• Trade execution - Trade is executed on the agreed terms.

• Trade confirmation - Confirmation of trade details by both parties.

• Trade settlement - Actual exchange of securities and funds.

• Post-trade activities - Reconciliation, reporting, and risk management.
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Q1. Educational background and work experience
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Q1. Explain Solid patterns
Ans. 
Solid patterns are a set of five design principles to make software designs more understandable, flexible, and maintainable.
• Single Responsibility Principle: A class should have only one reason to change.

• Open/Closed Principle: Software entities should be open for extension but closed for modification.

• Liskov Substitution Principle: Objects of a superclass should be replaceable with objects of its subclasses without affec...read more
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Q2. Oops concept core topics
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Reasoning and Arithmetic

Q1. Account concept and convention
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Q2. IFRS principle and their impact on financial statements
Ans. 
IFRS principles impact financial statements by ensuring consistency, transparency, and comparability.
• IFRS principles provide a common set of accounting standards for companies to follow

• They promote transparency by requiring companies to disclose relevant information in their financial statements

• IFRS principles enhance comparability by allowing investors to easily compare financial statements of different companies

• Examp...read more
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Q1. What is Credit enhancement
Ans. 
Credit enhancement is a strategy used to improve the credit rating of a borrower or a particular debt instrument.
• Credit enhancement can involve various methods such as guarantees, insurance, collateral, or letters of credit.

• It helps reduce the risk for lenders and investors, making the debt instrument more attractive.

• Examples include mortgage insurance for home loans and bond insurance for municipal bonds.
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Q2. Why investors invest in more risky tranche
Ans. 
Investors may invest in more risky tranches for higher potential returns.
• Higher risk tranches typically offer higher potential returns to compensate for the increased risk

• Investors with higher risk tolerance may be willing to invest in riskier tranches

• Diversification strategy may involve investing in a mix of tranches with varying levels of risk

• Investors may believe in the underlying assets' performance and are willing
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