Merchant banking (2 Viewers)

[gm]

Hi everyone,

I haven't seen this thread in ages...

If anyone wishes to ask questions, feel free.



For becoming a quant analyst. The B Maths + Finance degree (or whatever it's called) at UTS would be good. Apart from that, studying maths, econometrics, statistics and maybe finance on the side (possible in comm or econ degree) is good. Computer Science and Engineering is good as well...


As long as you get good grades, and know really how to use your math skill you should be good. I'd recommend reading some books like Options, Futures and Other Derivatives by Hull... Option Volatility and Pricing - Natenburg...

 

[jlh]

got a question...

what about the australian banking and finance institute?
how is this professional recognition going to affect my career outcomes?

reason why i ask is because i don't want to do a management unit, but its required to gain that professional recognition... any thoughts?

 

[Arkad]

For becoming a quant analyst. The B Maths + Finance degree (or whatever it's called) at UTS would be good. Apart from that, studying maths, econometrics, statistics and maybe finance on the side (possible in comm or econ degree) is good. Computer Science and Engineering is good as well...

Why UTS?

I hear you say that you need a lot of networking in IB, would you also need to network your way up the ladder if you're a quant?

And this networking thing scares the shit out of me.... I mean I'm a very scoial person and all, but I'm not fake... and i dunt think i could become fake, and this networking thing REQUIRES you to be fake? essentially?

Could someone further describe how you would go about this networking thing!!

PLEASE PLEASE respond to this post... i love u all *mwah*

http://www.careerjournal.com/jobhunting/networking/

 

[CrashOveride]

Hey Arkad, you said before that a quant can earn much more than an actuary? Do you have any sites that display statistics about quant salaries etc?

Also, I've heard gm mentioning previously you can study at places like UTS etc. I thought that employers more highly regarded the more 'elite' Univerisites like SYD or UNSW for certain degrees etc but i read somewhere recently that, for eg, banks are employing people with BA degrees and less prominent universities... any thoughts?

 

[Arkad]

Hey Arkad, you said before that a quant can earn much more than an actuary? Do you have any sites that display statistics about quant salaries etc?

Hi CrashOveride, you can browse this job board to get an idea of the salaries quants get in London and New York.

http://www.wilmott.com/categories.cfm?catid=5

here is an example:

Senior Equity Derivatives Quantitative Research Analyst, PhD

Leading US bank seeks senior Equity Derivatives Quantitative Research Analyst to add significant value to a extremely profitable desk. The group has an excellent library of market models and so your role will to design the more exotic and esoteric models for more complex and/or structured products. This is an excellent opportunity for an experienced Quantitative Analyst looking for more freedom and responsibility. Equity Derivative experience preferred, although other asset-classes may be considered in exceptional cases. You will have: 3+ years f/o pricing, PhD, good C++. This is an excellent opportunity to further your career and work alongside some of the finest Traders, Quants and Developers within Equity Derivatives. . Please call Nathan Francis for further details on +44 (0) 207 604 4444 or email your resume to nathan@njfsearch.com.

Package to $400- 750k depending on experience and seniority

Global Head of Quantitative Development, PhD, C++, UNIX

Major Investment Bank?s Quantitative Financial Development Group is looking for a Global Head of Quantitative Development to lead and manage the entire group in researching, developing, and enhancing models for option valuation in fixed income, mortgage, equity, foreign exchange, and other markets. This is an extremely senior hire and the position requires at least 7 years of experience in researching, developing and designing derivative valuation software, including current experience of leading an impressive Quantitative Development Group. The candidate must have a strong background in C/C++/Unix and have significant experience with numerical methods and have experience in option valuation. You will have expert knowledge of mathematical finance and have excellent Quantitative Development skills. A PhD in math, finance, physics or computer science is required. Please contact George Calderbank for a confidential discussion on +44 (0) 207 604 4444 or email your resume to george@njfsearch.com.

Package to $600 - 750k

 

[gm]

Hey,

Don't get the idea that the ONLY way to IB is through Comm/Law at UNSW or USYD. Simply work out the qualities the Investment Banks are looking for, and demonstrate them.

Now with quant analysts, this is different to 'investment banking'. Investment Banking is more known as 'Corporate Finance and Mergers/Acquistions'. Quants work with trading and risk management. Networking as a quant isn't as important as in CorpFin, but it's still useful if you want to climb the ladder.

If anyone wants particular advice, simply tell me -

. Why you want to be in finance/IB
. How you went at school
. What you want to study/ are studying at uni
. Your interest (if any) in finance/financial markets etc

It'll be easier for me to give advice.

Arkad, i noticed the links in your signature, are you into investing/trading? What are you hoping to study and do as a career?

 

[Arkad]

Arkad, i noticed the links in your signature, are you into investing/trading? What are you hoping to study and do as a career?

Yes I am into investing, but I'm just a novice right now. I am studying math and finance as bachelor degree, and anything in finance will be good as a career.

 

[Jeevers]

Hi GM, thanks for the advice so far...
If anyone wants particular advice, simply tell me -

. Why you want to be in finance/IB
I've always had an interest in business analysis and investment banking. I always watch the finance news and used to think about how a stockbroker or shareholder would conduct analysis based on new information affecting a particular company. Is it best to follow the herd or go against it in this situation? Do I know the business really well based on these facts?...Are the numbers released on Ch9, Ch7 etc outdated? How much should I invest given the risk level?These kind of questions have got me interested in finance and IB.

. How you went at school
Top 8% in HSC . I was interested and good in Economics and Mathematics.

. What you want to study/ are studying at uni
Honours hopefully in Maths+Finance/Maths+Finance

. Your interest (if any) in finance/financial markets etc
I'm a novice, but by the end of next yr if all goes well, will be an intermediate.
Am interested in Shares, Derivative Securities, Bonds, Options....more interested in shares...as i said, im just a novice.

Good to hear from you GM and thanks for the advice so far.
Yeh, I would like to gain more of an insight from a quant\analyst perspective, especially in regard to the above questions!
Cheers
jeevers

 

[§eraphim]

Hey,

Don't get the idea that the ONLY way to IB is through Comm/Law at UNSW or USYD. Simply work out the qualities the Investment Banks are looking for, and demonstrate them.

Now with quant analysts, this is different to 'investment banking'. Investment Banking is more known as 'Corporate Finance and Mergers/Acquistions'. Quants work with trading and risk management. Networking as a quant isn't as important as in CorpFin, but it's still useful if you want to climb the ladder.

If anyone wants particular advice, simply tell me -

. Why you want to be in finance/IB
. How you went at school
. What you want to study/ are studying at uni
. Your interest (if any) in finance/financial markets etc

It'll be easier for me to give advice.

Arkad, i noticed the links in your signature, are you into investing/trading? What are you hoping to study and do as a career?

1. I like to make money using maths in some quant role. i wouldnt mind trading too.
2. uai: 99.55, 1st in sydney tech for 4u maths, received a small monetary scholarship from the Faculty of Commerce & Economics at UNSW
3. BCom/BSc (Finance & Statistics). I plan to take a variety of subjects touching on areas of interest which include actuarial (insurance mathematics) and data mining (as applied to loan portfolio management). I will also be taking into course into C++ programming (seems like a prereq for any quant)
4. took part in most of portfolio management comps. also was went to the ubs mock trading game (damm that was hard!). i am interested in a number of things which include:

- real option analysis applied 2 structured finance, esp infrastructure (im sure my mtahs can help me with the binomial option pricing model used for this)
- applications of neural networks and general data mining techniques to managing loan portfolios
- pricing exotic derivatives. atm there is a lot of research into developing reliable quant models for credit risk derivatives (westpac is sponsoring a postgrad scholarship at unsw for applied mathematicians to do research into this area)
- application of finance theory to environmental finance. eg pricing carbon credits and water rights, and associated derivatives. this is also another area of interest for economists too.
- further research into Malliavin calculus (stochastic calculus of variations) and applications to numerical computing techniques in pricing derivatives

thats all i can think of at the moment...

atm i think my favourite would have to be the environmental finance one.

 

[gm]

Just on a quick side note...

Another tip.... Learn to go on drinking binges / socialise with the boys / get laid...


It sounds sleazy or whatever, but alot of finance guys love to party...

Make sure you don't waste school/uni just studying.... You'll get to 30-40 and see that you've wasted your life.

 

[Super Pig]

Westpac is also sponsoring a PhD scholarship at USYD for applied mathematicians to look into credit derivatives. This must be a big thing.

I am also very interested in derivative pricing. There is a whole zoo of exotic options out there waiting to be properly evaluated. I have just done a project on executive stock options (ESO's). The big corps need the correct evaluation of these because the new accounting standards require them to put the cost into the annual reports. It is such a tough problem that actuaries and mathematicians all over the world are involved in it.

I was also planning a move into the IB field. But the 100 hour week scared me away, there is no way I can survive, not even a year. So I'll probably be looking for a quant role. I am planning for a IT master in financial modelling, and then maybe a SIA. Any suggestions for ppl doing science/maths/stats who want to move into the finance area? Any advice is greatly appreciated.

 

[§eraphim]

man i wish i could do that kind of stuff in any yr. >.<

u can do a BSc (Advanced) in Financial Mathematics at usyd (recently introduced i think). i think there is too much hype over financial mathematics being used for quant roles. i dont see the extremely small demand for quants being able to keep pace with the horde of financial math wannabes being churned out of university. Quant roles are specialised and require highly qualified ppl adept at both statistics, finance and programming. a MSc would be more useful (i intend to pursue this) as you have a good choice of coursework b4 doing ur thesis (which can also be work-based).

In terms of the future, i see more growth in trading roles as they actually make money. Quants = R&D = expendable.

im biased but id do MFin (Mathematical Finance) at unsw. it requires 12 months experience in the financial services industry.

Id appreciate it if any of you could give me advice too. I'm taking BCom/BSc (Finance & Statistics) and am doing a mix of actuarial subjects (financial mathematics for insurance) and finance subjects (mostly in derivatives and investment). In maths i will be taking normal stats stuff (inference, time series, etc) as well as numerical computing for finance and a data mining subject. I hope to gain 3 exemptions frmo my university subjects for Part 1 in actuarial studies and intend to take some of the other Part1 exams externally over the summer. i plan to have achieved a gained part 1 by the time of my graduation ceremony (and in time for grad recruitment!). As I have stated before, I have interests in corporate finance, mathematical finance and financial economics. Where will my degree lead to?

 

[§eraphim]

quants in the UK

 

[aditya]

daaaamn, and i thought i wanted to be an IB... you guys are hardcore - good hardcore nto nerdy hardcore... never met any people as interested in finance as u guys :|

but yeh im gonna be doing software engineering/ commerce (accounting and (finance or econometrics - am undecided) at usyd, but i was hoping to trasnfer into the bcom/bsciecne degree program mid way through because then i would be able to major in finance instead of econometrics as i wouldve relevant maths skills regardless...

i just want "that type of job" wen it comes to IB, i dunt need to be a hardcore investment banker, i like the accoutning career actually... get into a nice job, move up every 2 years, 8 years ur a partner of the company..... thats so great..... i mean that would be good.

IB just seems like such a hassle.... i mean its prolli great working as they do, but i went to a few american sites and the peopel there are even more hardcore than here... they all have PHDS in statistics and thts actualli wats required from employers over there....

aus, people are tossing over honours, and they're doign phds... just too much competition - sometimes... u just need to know ur place

 

[aditya]

also im not sure if i shoudl keep the software engineering end of my degree, would it be advantageous to do a whole engineering degree in any finance discipline? whether investment banking or quant analysis etc etc

would i get preference over other people if i had both software eng and commerce honours?

 

[aditya]

the financial mathematics thing at sydney is soooo awesome, it sounds bloody mad, but there are only 2 subjects :| and they ahve prerequisits which i cover since im doing engineering, i was thinking of just doing those 2 subjects and keeping the software engineering end regardless...

 

[aditya]

also, seraphim, i dno what ur doing exactly but i think ur going 2 broad mate...

the thingi with ur goal on getting part 1 exemptions puts u in the mediocre range of actuiaries to say the least and also i know a few VERY VERY successful acturies and they have NO intention on getting their part 2 qualifications even - they are simply using the quant. skills they achieved in the course and are now earning a fucking shit load running their own companies....

i dno if ur up to that, i dno y they did it, or how it was successful, but regardless - even the less hardcore guys i know that done actuarial studies are working in finance, and not as actuaries...

 

[Arkad]

IB just seems like such a hassle.... i mean its prolli great working as they do, but i went to a few american sites and the peopel there are even more hardcore than here... they all have PHDS in statistics and thts actualli wats required from employers over there....

Why would an Investment Banker need a PhD in stats? I think a MBA or a PhD in business or finance would be better. It's Quants that have math PhDs, but I think specialised masters are better though.

 

[Arkad]

also im not sure if i shoudl keep the software engineering end of my degree, would it be advantageous to do a whole engineering degree in any finance discipline? whether investment banking or quant analysis etc etc

would i get preference over other people if i had both software eng and commerce honours?

I don't see how a software engineering degree would help in IB, but quants yes.

 

[Super Pig]

man i wish i could do that kind of stuff in any yr. >.<

u can do a BSc (Advanced) in Financial Mathematics at usyd (recently introduced i think). i think there is too much hype over financial mathematics being used for quant roles. i dont see the extremely small demand for quants being able to keep pace with the horde of financial math wannabes being churned out of university. Quant roles are specialised and require highly qualified ppl adept at both statistics, finance and programming. a MSc would be more useful (i intend to pursue this) as you have a good choice of coursework b4 doing ur thesis (which can also be work-based).

In terms of the future, i see more growth in trading roles as they actually make money. Quants = R&D = expendable.

im biased but id do MFin (Mathematical Finance) at unsw. it requires 12 months experience in the financial services industry.

Id appreciate it if any of you could give me advice too. I'm taking BCom/BSc (Finance & Statistics) and am doing a mix of actuarial subjects (financial mathematics for insurance) and finance subjects (mostly in derivatives and investment). In maths i will be taking normal stats stuff (inference, time series, etc) as well as numerical computing for finance and a data mining subject. I hope to gain 3 exemptions frmo my university subjects for Part 1 in actuarial studies and intend to take some of the other Part1 exams externally over the summer. i plan to have achieved a gained part 1 by the time of my graduation ceremony (and in time for grad recruitment!). As I have stated before, I have interests in corporate finance, mathematical finance and financial economics. Where will my degree lead to?

Man you have great ambitions. I considered the actuary route as well. But there are just too many exams and stages to pass, and yet some ppl couldn't get a job at the end of all the hassle. The basic stuff you learn shouldn't be too much different from a maths/stats major, it just gears more towards insurance I guess. I may get a few exemptions if I can, but I wouldn't push too desperately to get Part I done by a set date.

Statistics is quite useful I think. There are jobs in commercial banks for that. I am not an official Financial Maths major (a maths/stats double major seem more versatile), but I am doing everything that's required by the major plus other stuff. In fact the supervisor for my ESO project is the FM program coordinator. He told me that there are ppl out there who have no idea about proper mathematical models, and they have their non-rigorous and often incorrect ways to handle business. So there is a need for mathematical practitioners who can put theory into useful business tools. I am learning towards one of those.

I think you are quite right, a good quant needs to be competent in stats, finance and programming (a science/commerce/engineering all rounder?). I am heading towards an MIT at sydney focusing on data mining and related applications in finance. There is a research/project component within industry in the 2nd half of that degree, so hopefully I'll earn some experience from that. I don't think I could end up being a trader though. I don't really have the personality for that. Whether that means I am not suitable for the industry altogether I am not too sure. But I'd rather prefer a more relaxed environment, where I can sit down in front of a desk and play with whatever model I have.