Welcome to the first issue of “Investment Banking Insights” with Fabrizio Allegra, a new section of the Basics of Investing newsletter. This new section discusses relevant information for individuals who will be interviewing at investment banks or would simply like to learn more about them. The aim is to provide invaluable insights, advice, and indispensable resources to help you conquer the challenges of finance interviews with confidence.

The Rigor of Investment Banking Interviews: What Sets Them Apart?

Investment banking interviews are known for their rigorous nature and competitive edge. They require a unique set of skills, a deep understanding of financial concepts, and the ability to demonstrate your suitability for the demanding environment of the industry. From hundreds of unique interview questions and the adaptability needed during the interview process, being prepared is no walk in the park.

BlackRock, Inc:

BlackRock is a multinational investment firm, asset manager, and one of the world’s leading providers of investment, advisory, and risk management solutions. In addition to this, they manage over $9.4 trillion in assets under management (AUM). Due to its power, size of assets, and large scope of financial activities, BlackRock has been called the world’s largest shadow bank.

iShares, a subsidiary of BlackRock, is a global leader in exchange-traded funds with over $2 trillion invested in more than 800 different product offerings such as commodities, equities, fixed income, multi-assets, and real estate. Most iShares funds actually track the performance of either a stock market or bond market index. They also have funds that cover a wide variety of sectors. Namely, energy funds, industrial funds, healthcare funds, and discretionary funds.

In addition to iShares, BlackRock also offers Aladdin (an acronym for Asset, Liability, Debt, and Derivative Investment Network), a tool used by a multitude of finance experts. It specializes in portfolio, data, and risk management. Aladdin and its risk analytics are relied upon by over 200 institutions, including BlackRock. Clients include insurers, pension funds, corporations, asset managers, banks, and official institutions (BlackRock FAQs). Aladdin manages more than $21.6 trillion in assets as of 2020. The majority of customers who use Aladdin are in financial services. Companies include Wells Fargo, BNY Mellon, and Fannie Mae.

Morgan Stanley, for example, integrated the Aladdin software within their Portfolio Risk Platform. Using Aladdin, Morgan Stanley’s platform is able to show where risk is proceeding from, meaning that clients of the platform can make more informed and beneficial financial decisions.

How to Prepare

Learning about BlackRock's subsidiaries, such as iShares and Aladdin, demonstrates that you have a deep understanding of the financial industry and are aware of the diverse services and tools used in asset management. Demonstrating awareness of BlackRock's subsidiaries and tools shows that you've done your research on the company. It reflects a proactive approach and an interest in aligning yourself with BlackRock's culture and values.

Preparing for a job interview involves more than just understanding the company; it requires a focused effort on anticipating and addressing specific interview questions. This dual preparation ensures that you can navigate the conversation confidently, avoid stuttering, and present yourself as a well-prepared candidate ready to meet the challenges of the role.

Additional Resources

The following are some great in-depth resources to use to prepare for an interview at BlackRock:

• https://www.wallstreetoasis.com/company/blackrock/interview

• https://www.wallstreetoasis.com/forum/asset-management/asset-management-interview-preparation

• https://www.wallstreetprep.com/corporate/asset-management/

• https://www.investopedia.com/terms/a/assetmanagement.asp

• https://www.investopedia.com/articles/markets/012616/how-blackrock-makes-money.asp

• https://amplifyme.com/finance-accelerator (Free for all students)

Before any finance interview, make sure you are read up on all news on finance, economics, geopolitics, and technology. Remember that both behavioral and technical aspects of an interview are incredibly important. Don’t let yourself rely on just one of the two.