Fixed Income Analyst Interview Questions UK: 8 Real Questions and What Interviewers Want

Most Fixed Income Analyst interviews in the UK follow a pattern, and knowing it beats guessing. Below are eight questions from our bank of 12, each with a note on what the interviewer is really after.

Eight Fixed Income Analyst interview questions, and what the interviewer is thinking

1. What does a typical day as a fixed income analyst involve, and why are you drawn to bonds?

Why they ask: To check you understand the support role to traders, sales and portfolio managers and have real interest in credit and rates.

2. What is convexity, and how would you use DV01 and convexity together to hedge a bond position?

Why they ask: To test understanding beyond basic duration, which underpins hedging and relative value work.

3. Explain the difference between G-spread, Z-spread and option-adjusted spread, and when you would use each.

Why they ask: To test your knowledge of how credit value is measured and compared.

4. How do index-linked gilts work, and how is the move of RPI to CPIH going to affect them?

Why they ask: To check knowledge of the UK-specific market, where analysts are often asked about linkers.

5. How would you assess the credit quality of a corporate issuer and decide whether its bonds offer good value?

Why they ask: To test credit analysis, the core skill of an analyst in this field.

6. How do gilt issuance by the DMO and the Bank of England's quantitative tightening affect gilt yields and the shape of the curve?

Why they ask: To test awareness of supply and demand dynamics in the UK government bond market.

7. A portfolio manager asks for your view on a bond, but your model and the broker's price are quite different. What do you do?

Why they ask: To test judgement on valuation discrepancies and independence of thought.

8. Tell me about a time you made a recommendation on a bond or sector that turned out to be right or wrong.

Why they ask: To see how you form, communicate and review a market view.

A sample answer to question 1

What does a typical day as a fixed income analyst involve, and why are you drawn to bonds?

My day begins with the overnight rates, credit and economic news, plus new issuance and any rating actions. I update the curves, spreads and valuation models, then prepare a morning note highlighting what matters for our traders and clients, such as a gilt auction outcome, a central bank speech or a widening in a sector's spreads. Through the day I analyse issuers, comparing leverage, interest cover and bond pricing against peers, build relative value screens, and answer ad hoc questions from sales and traders. I also maintain the data and models so they are reliable. I am drawn to fixed income because it combines macroeconomics with rigorous credit analysis, and because the maths behind pricing, duration and spreads is precise but still depends on judgement about central banks and corporate behaviour. It rewards clear thinking and being right about where value lies.

Common mistake to avoid: Describing it as only number crunching; no mention of the markets you follow

Want the rest?

Full model answers, key points and common mistakes for all 12 questions are on the Fixed Income Analyst interview questions page. The first five are free, no sign-up needed.