How do I prepare for a DCM interview?

Own the bond math (price/yield, duration, spreads), the new-issue process end to end, and current market color — where are rates and spreads now, and why. KomFi gives you 2,000 DCM practice questions with full explanations to make the mechanics automatic.

What does a debt capital markets analyst do?

DCM sits between issuers and the bond market: advising on timing, structure, and pricing of new debt, running the syndication process, and monitoring markets. Interviews test exactly that mechanics-plus-markets blend.

How is DCM different from leveraged finance?

DCM is predominantly investment-grade, flow-driven, and market-facing; LevFin lives in high-yield and LBO financing with heavier credit work and documentation. Both start from the same bond math this bank drills.

Free sample questions

1. In the context of Debt Capital Markets, what is a leverage-based margin ratchet?
2. Which officer of a borrower is typically responsible for signing the compliance certificate that confirms the
3. Why is the Administrative Agent's role important for the margin ratchet?
4. If a company has a leverage-based pricing grid and SOFR rises significantly while leverage stays the same, wha
5. What is meant by the 'bond floor' in the context of yield analysis?
6. For a bond trading at a discount (below par), which yield measure is typically the same as the Yield to Worst?
7. What is a 'call schedule' for a corporate bond?
8. If a bond's Yield to Worst is equal to its Yield to Maturity, what can we likely conclude about the bond's cur
9. If an issuer decides *not* to call a bond on the first call date even though it is economically beneficial to
10. Which of the following describes a 'step-up' coupon in a callable bond?
11. What is a 'deferred call'?
12. If a bond's YTW is significantly lower than its YTM, the bond is likely trading at a:
13. For a bond with several call dates at different prices, the Yield to Worst is:
14. What does a 5-year bond described as 'NC2' signify regarding its call protection?
15. A 'make-whole' call differs from a standard 'fixed-price' call because the redemption price of a make-whole ca
16. If a bond has a 'Par Call' feature starting 6 months before maturity, what does this mean?
17. If a bond is 'callable at par,' what is the issuer's redemption cost per $1,000 of face value?
18. A 102 call premium is equivalent to paying:
19. What is the main disadvantage for an issuer when using a 'make-whole' call instead of a 'fixed-price' call?
20. The concept of 'Pull to Par' describes the price convergence… — Which yield measure inherently accounts for th
21. If an investor buys a bond with a 5% coupon at a price of 102, how does the Yield to Maturity (YTM) compare to
22. A bond's yield to maturity (YTM) is 7%, but its current yiel… — What does this suggest about the bond's curren
23. In a stable interest rate environment, which yield measure will fluctuate the most on a day-to-day basis for a
24. What is the primary reason that the Yield to Maturity (YTM) of a premium bond is lower than its Current Yield?
25. What is the most accurate description of its Yield to Maturity (YTM)?
26. If the compounded SOFR for a given period is 4.50%, what is the all-in annualized coupon for that period?
27. What is meant by the term 'compounding in arrears' for a SOFR-based floating-rate note?
28. In Debt Capital Markets, who is generally the 'payer' of the credit spread in a standard bond transaction?
29. Which type of investor is a 'natural buyer' of floating-rate notes due to their need to match floating-rate as
30. What happens to the credit spread of a 'fallen angel' issuer?