Margadarsi Chit Fund Junior Executive Interview Questions and Answers

Q1. Difference between Cmbs vs Rmbs
Ans. 
CMBS are securities backed by commercial mortgages, while RMBS are securities backed by residential mortgages.
• CMBS are backed by commercial properties such as office buildings, shopping centers, and hotels.

• RMBS are backed by residential properties such as single-family homes, condos, and townhouses.

• CMBS tend to have higher loan amounts and lower prepayment rates compared to RMBS.

• RMBS are more sensitive to changes in in...read more
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Q2. Why you want to work Morningstar
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Q3. Difference between bankruptcy and insolvency
Ans. 
Bankruptcy is a legal process where a person or business is unable to repay debts, while insolvency refers to a financial state of being unable to pay debts.
• Bankruptcy is a legal status declared by a court when a person or business cannot repay debts.

• Insolvency is a financial state where a person or business is unable to pay debts as they become due.

• Bankruptcy involves a formal legal process, while insolvency is a fina...read more
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Q4. Prepayment risk meaning
Ans. 
Prepayment risk refers to the risk that borrowers will pay off their loans earlier than expected, resulting in a loss of future interest payments for the lender.
• Prepayment risk is common in mortgage-backed securities, where homeowners can refinance their mortgages at lower interest rates, causing the investor to lose out on expected interest income.

• It can also occur in bonds or other fixed-income securities when intere...read more
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Q5. What is asset backed security and how is different from CMBS
Ans. 
Asset backed security is a type of financial security backed by a pool of assets, while CMBS specifically refers to securities backed by commercial real estate loans.
• Asset backed securities are backed by a variety of assets such as credit card receivables, auto loans, or student loans.

• CMBS are specifically backed by commercial real estate loans, such as office buildings, shopping centers, or hotels.

• Asset backed securit...read more
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Q6. What has more prepayment risk CMBS, RMBS, ABS
Ans. 
CMBS has more prepayment risk compared to RMBS and ABS.
• CMBS (Commercial Mortgage-Backed Securities) typically have higher prepayment risk due to the nature of commercial real estate loans.

• RMBS (Residential Mortgage-Backed Securities) have lower prepayment risk compared to CMBS as residential mortgages are less likely to prepay.

• ABS (Asset-Backed Securities) generally have lower prepayment risk as the underlying assets m...read more
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Online coding test provided by the company 1-easy,1-medium,1-hard

System design round using oops

Q1. Data structures based problems, dbms, sql query, CN and other fundamental topics
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Q1. Questions based on system design round from what i submitted
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