Deutsche Bank Interview Questions, Process, and Tips

Duration and convexity are measures used in fixed income investing to assess the sensitivity of bond prices to changes in interest rates.

• Duration measures the sensitivity of a bond's price to changes in interest rates. It is a weighted average of the times until each cash flow is received, with weights proportional to the present value of the cash flow.

• Convexity measures the curvature of the price-yield relationship of...read more

Paying a fixed amount does not determine if you are long or short risk.

• Paying a fixed amount does not indicate the direction of the risk.

• Being long or short risk depends on the specific investment or position taken.

• For example, buying a stock is considered long risk, while short selling a stock is short risk.

Bootstrapping is a statistical technique for estimating the sampling distribution of a statistic by resampling with replacement.

• Bootstrapping involves repeatedly sampling with replacement from the original data set to create multiple 'bootstrap samples'.

• The curve in bootstrapping is built by plotting the distribution of the statistic of interest from the bootstrap samples.

• It helps in estimating the variability and unce...read more

A CDS is valued based on its credit spread, risk-free rate, and time to maturity.

• The value of a CDS is determined by the credit spread, which represents the difference in interest rates between the CDS and a risk-free bond.

• The risk-free rate is also a factor in valuing a CDS, as it represents the opportunity cost of investing in a risk-free asset instead of the CDS.

• The time to maturity of the CDS is another important f...read more

I will prioritize the emails based on urgency and importance.

• Assess the urgency and importance of each email

• Respond to urgent emails first

• Delegate or schedule less urgent emails

• Use email filters or labels to organize emails

• Communicate with stakeholders if necessary