| Topic Name: |
IT -> Quant |
| Message Name: |
Quant jobs |
| Date Posted: |
08/18/2002 |
| In Reply To: |
Need some advice on how to get into Finance Industry.
I am currently working in software development. Six years ago, after getting a MS in Computer Science in a top 10 school, I went to a software start-up thinking that I might change the world.
Now after many lines of code and the IT downturn, I realized the job is not intellectually stimulating anymore. In addition, the salary in Software industry are likely to drop rather than go up.
Since I also have a MS in Mathematics, I am very interested in Quant or modeling type of work. I have good training in applied mathematics and I am relatively sharp (I earned both MS degrees when I was 19 and I was on a Fellowship in a PhD program.) If I spent sometime to pick up the knowledge in financial applications, I should be able to excel in such position.
So what is the quick way to land a position? Do I have to have some type of formal training? I do not like the MBA/PhD in Finance route, because it takes too long. I heard about CFA certificates and it also takes three years. However, at least, I could start to look for a job after passing level 1. I also noticed a new type of program, MS in Financial Math, especially the part time one in NYU and Columbia, is much doable with only 10 courses. Nevertheless, I think it is a little weird to get another MS in mathematics though with a different concentration.
1) Do Wall Street firms take in people with good analytical abilities, but little experience and provide on-job training? For instance, a trainee program (for Quant)?
2) What about landing a job in Wall Street IT department now? (Then, move into a Quant later.) Will it help much if I spent a year to pass CFA level 1, or read some financial books in my spare time?
3) Even if I get into a Quant position, I am wondering if lacking a PhD will severely limit my potentials (e.g. Are MS and PhD treated differently?)
4) Any other suggestions?
Thanks for your time! :)
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| Message: |
There are a few different types of quant jobs at Wall Street firms. For instance, you can work as a quant developer for a interest rate derivative trading desk, or you can be a quant researcher developing pricing models or backtesting strategies. As in any job, your qualification and experience matters but not as much as the competition you're competing against. For quant developers, they usually hire someone with excellent programming skills (C++, Perl, Shell Script, etc) and some knowledge of quantitative finance. Most of the Master's degree program in quant finance (CMU, NYU, etc) feed people into these types of jobs--quant analyst in the sell-side. The job title or products may be different, but the job responsibility is the same--mostly programming.
It is even harder to become a quant researcher these days because you're competing against PhD's in Finance or other hard sciences who have written their dissertations in the subject, and banks like to hire PhDs.
The CFA designation is geared towards the asset management and emphasizes fundamental analysis and portfolio management. For entry-level Quant jobs, you need to know your basic quant finance and your programming... CFA won't hurt you but I doubt it matters too much
You can try to land a job with the IT dept but I don't know if it'll help you transfer to a quant job. Bottom line... you gotta know some quant finance.
You could think about the possibility of pursuing a Master's degree in Quant finance. You're most likely to land a job from the CMU or the NYU program, even though a lot of ppl from last yr's class are still unemployed.
The competition for these jobs are even more fierce for two reasons: 1) a lot of people who pursue these jobs are really smart and know a lot more than you do, and 2) there are very few openings as quants, once they're hired, generally get to stay for a few yrs, if not more (that is, if the bank doesn't need to fire a lot of ppl). So, start working... know your stochastic calculus, interest rate models, GARCH, etc. If you want to know what kind of "basic quant finance knowledge" I was referring to, take a look at the curriculum of those Master's degree programs.
Hope it helps.
K
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