Morgan Stanley Credit Risk Analyst Interview Questions and Answers

Amex operates on an open loop business model.

• Amex operates as a payment network that partners with various merchants and banks to process transactions.

• Open loop systems allow for transactions to be made at a wide range of merchants, both online and offline.

• Examples of open loop systems include Visa, Mastercard, and Discover.

Hedge funds are pools of capital managed aggressively while private equity invests in private companies with the aim of improving their operations.

• Hedge funds are more actively managed and use a variety of investment strategies to generate high returns.

• Private equity firms invest in private companies with the aim of improving their operations and then selling them for a profit.

• Hedge funds are typically open to a wider ...read more

Global economic indicators suggest a possible recession.

• Trade tensions between US and China have led to a slowdown in global trade.

• Many countries are experiencing low economic growth rates.

• Central banks are cutting interest rates to stimulate growth.

• Inverted yield curves in bond markets indicate investor pessimism.

• Political uncertainty, such as Brexit, is causing instability in markets.

Financial statements include balance sheet, income statement, and cash flow statement. Ratios include liquidity, profitability, and solvency ratios.

• Balance sheet shows a company's assets, liabilities, and equity at a specific point in time

• Income statement shows a company's revenue, expenses, and net income over a period of time

• Cash flow statement shows a company's cash inflows and outflows over a period of time

• Liquidit...read more

Jet Airways

• Jet Airways, once India's largest private airline, filed for bankruptcy in April 2019

• The airline had accumulated a debt of over Rs 8,000 crore

• Jet Airways had to ground all its flights and lay off thousands of employees

As a Credit Risk Analyst, my typical day at the office involves analyzing financial data, assessing creditworthiness, and making recommendations to minimize credit risk.

• Reviewing and analyzing financial statements and credit reports

• Assessing the creditworthiness of individuals and businesses

• Evaluating loan applications and determining appropriate credit limits

• Monitoring and managing existing credit exposures

• Identifying...read more