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Accounting is a vital skill if you end up in a managerial position, and unless your career goal is to always be a cog in someone else's clockwork, then you will eventually find yourself in a managerial/senior partnership position even through quant research. I still play a critical role in my firm's quant strategies team, but here's a few things I've had to ...


It seems logical to me to have a Financial accounting course in a quant program. Quants can have a lot of different occupations, from derivative pricing to quant analyst in a "research" (i.e. analysis) dept. of a broker, a risk dept., a fund (as an analyst or as a potfolio manager), or quant execution trader (the list is far longer). In the case of being ...


Please look at the 16 December 2010 publication of the Basel III regulatory frameworks for capital and liquidity and the 13 January 2011 press release on the loss absorbency of capital at the point of non-viability and related FAQs "Basel III definition of capital - Frequently asked questions" like bcbs 211.


There are two reasons for a quant to know accounting. The first is that a fair number of "quant" problems are, or at least can be cast as, accounting problems. This includes time series or "non-parametric" analysis of accounting numbers. The second reason is that accounting numbers are sometimes faked, meaning that a quant has to be able to deconstruct ...


There are various kinds of "quants". If you are an equity quant building quantitative stock selection models using fundamentals such as price/earnings, EBITDA/EV, or especially accruals, then you should be knowledegable about accounting. If you become a fixed income derivatives quant, accounting is less important. Education should not be expected to prepare ...


Certain structural models of credit risk/default require some background in accounting, but not much. That these credit models are getting baked into the Basel regulations for CVA, CoCo bonds, and so on, makes it marginally more important to know. There's also an entire industry based on convertible bond and capital structure arbitrage where knowing ...


A quant may find accounting useful occasionally but it is really tangential knowledge. I would not consider typical financial or managerial accounting as pre requisites for a Quant Fin program. That said, certain quants in fixed income or credit do end up dealing with intricacy of cash flows. Accounting background will help in those scenarios.

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