credit analyst interview questions shared by candidates
Which one has greater counter party risk? A boutique IB firm in the U.S, or a large bank in Botswana?
I said it depends, and includes factors such as liquidity, counter party and sovereignty risk, she snapped: make your assumptions and move on.
This is an incorrect answer. The US economy is probably 100x more stable than the economy in Botswana. If you bought bonds in Botswana, the risk that you will lose your money is far greater than it is in the US. When it is a fact based question like this, saying "it depends" is seen as either wrong or you don't know. You have to give solid answer with hard facts.