Hot answers tagged

10

FO is shrinking across the large investment banks. The market is not developing new products that will need new pricing formulas, if anything it is reverting to more vanilla structures. Nowdays FO quants typically hack existing models around the corners to manage new market conditions (change Sabr a bit to deal with negative rates, refine the treatment of ...


8

Of course banks will continue to structure non linear products, other participants to consume them. Thus pricing and hedging them will be needed. On the one hand less exotic products and more "standard" ones are needed, giving birth to larger flow desks and business. But on the other hands regulation change the way to valuate them (think about CVA and ...


6

Financial economics is what economics calls finance. Finance is what finance calls finance. Less flippantly though, there's a long debate on whether finance is a subfield of economics, and this debate goes back at least to the PhD thesis of Markowitz. Prof. Milton Friedman famously opposed awarding Markowitz a PhD in economics from the University of Chicago ...


5

The above posts are incorrect in that it has nothing to do with a distinction between prop trading or client facing trading. Flow trading simply means that the underlying products are "commodity products" in the sense that they are easy to value, high turnover products. Thus rates flow trading involves the trading of cash sovereign government bonds, ...


5

There is absolutely bright future being a pricing quant, so don't make it a reason for you not doing a degree in financial engineering. Being able to buy a relative cheap (still not that cheap, eg: Numerix charges like a million...) solution for quantitative pricing doesn't mean you don't need a quant. This is like saying we don't need a bus driver because ...


4

"Individual Craftsmanship"...I am not sure how you want to apply this skill set later. Craftsman to me means someone who simply applies a tool set, it does not imply (according to the dictionary definition) whether professionally to earn money or in order to teach or treat it as a personal hobby. So please let me comment on all three: Professionally in the ...


3

(these are just my random opinions. Sorry, I expect many people to disagree with some of them.) Bloomberg makes no effort to make its terminals available to students - quite the opposite. Hence lots of recent graduates don't know the terminal, but do know how to get things done without the terminal, and don't think they need the terminal. It's a problem for ...


2

More a comment than a proper answer, with low rep I can't comment. By the way, I would say that a PhD isn't a requirement in order to do a quant job - look at Citadel, for example: most of their hires don't have a PhD. What they do have, indeed, is the capability to formulate well-posed problems, and to deal even with ill posed ones.


2

I think it depends on the size of your organization/team, since for smaller organisations you would need to manipulate your variables and input data much more than larger ones, and therefore would need something more nimble like Python. More enterprise level, which generally have predefined data tables and teams/tools, teams would prefer you work with C++ or ...


1

I suspect that this (as it's career-focused rather than technical) is off-topic here, but my brief response would be to change your emphasis as you read the spec. The data is not the key, but the skills you can deploy to analyse it: Aid with data curation... and the buildout of models that ... identify data driven investment signals Manage data ...


1

If you would like to obtain a job as a quant first you have to pass a job interview in a company. During the job inteview you will be asked about basic math (derivative, integral, limit, etc.), stochastic analysis (martingale, Wiener process, Poisson process, etc.), ODE, PDE, SDE, risk measures, Black-Scholes model, short-interest rate models, Value at Risk, ...


1

Assuming that you are totally new to the field, Columbia's Risk Management and Financial Engineering course on Coursera is an excellent introduction. It focuses on discrete time models and you will need only a bare minimum knowledge of the revel ant mathematics. Otherwise, I've never seen a useful intro RM text.


1

I do not know about name of specific software that is being used by trader but you must have heard about Algorithm Trading. It involve use of advance techniques to identify trend and price differences in the securities through automated computer software. No human being is involved in execution of such trade. It rely entirely on use of software rather than ...


1

Mark Joshi has a great collection of tips and interview questions on this topic. Edit: A bit harder to spot, so here it is directly: http://www.markjoshi.com/downloads/advice.pdf


1

You want to know about their recent staff turnover and hiring rates. You want to be at a place that is both stable and growing slowly, and doesn't hire and fire employees (overlapping but distinct criteria). On the first point, I would avoid new and fast growth firms unless you don't mind being fired in a year since you were hired liberally and the growth ...


Only top voted, non community-wiki answers of a minimum length are eligible