Nomura Holdings Interview Questions, Process, and Tips

Bond market is a financial market where investors buy and sell debt securities issued by corporations or governments.

• Bonds are essentially loans made by investors to issuers

• The bond market is important for companies and governments to raise capital

• Bond prices and yields are inversely related

• The bond market can be segmented by issuer, credit rating, maturity, and type of bond

• Examples of bonds include Treasury bonds, cor...read more

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Common types of derivatives include options, futures, and swaps.

• Derivatives can be traded on exchanges or over-the-counter.

• Derivatives played a role in the 2008 financial crisis.

• Derivatives can be complex and carry significant risk.

An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.

• Options are commonly used in the stock market as a form of derivative trading.

• There are two types of options: call options and put options.

• Call options give the buyer the right to buy an underlying asset at a specific price, while put options give the buyer t...read more

Repo is a financial transaction where one party sells securities to another party with an agreement to buy them back at a later date.

• Repo stands for repurchase agreement.

• It is a short-term borrowing mechanism used by banks and other financial institutions.

• The party selling the securities is known as the 'seller' or 'borrower', while the party buying the securities is known as the 'buyer' or 'lender'.

• The interest rate o...read more

Exposures include credit, market, operational, and liquidity. CSA is a Credit Support Annex. Product types include derivatives, bonds, and loans.

• Exposures can be credit, market, operational, or liquidity related

• CSA stands for Credit Support Annex and is a legal document that regulates collateral for derivatives transactions

• Product types can include derivatives, bonds, and loans