UBS: Equities sales and trading (internship)

Question

Can you please tell me about your understanding of the 'credit crunch' and how it could effect UBS Investment bank?

Candidate's answer

Explained CDO's and the effect of 'toxic' assets on the global market, tightening of lending and how that has been reflected in LIBOR, decoupling of LIBOR and Bank of England Base Rate. Tightening of credit markets has affected UBS specifically in terms of its Prime Brokerage department having to reduce leverage massively and no longer being able to lend 'cheap' money to hedge funds.

Question

Relationship skills with clients are vital in equities, can you tell why you think you would be particularly good in this area?

Candidate's answer

Explained that based on a number of specific roles and experiences at university I have developed strong relationship skills built on trust and rapport, a skill I see as very important throughout the finance world.

Question

Why have you chosen to apply in investment banking rather than your degree area (engineering)?

Candidate's answer

Having a general interest in markets throughout my spare time at university and getting involved with a number of business competitions developed a strong interest and business and finance.

Having experience in customer facing roles previously drew me towards the area of equities sales and trading.

These questions were provided to us by a candidate claiming to have interviewed at the institution named above. We cannot guarantee that these were the actual questions asked.