From Wall Street to UCLA Career Coaching. AMA

Dear All,

I am proud to be a Career Coach for the Master of Financial Engineering program at the UCLA Anderson School of Management.

• I hold a B.A. in Mathematics and a B.A. in Economics.
• I have held various positions on Wall Street for a decade
• My areas of expertise include Credit Derivatives & other Exotic Products, High-Yield Research, and Risk Management. I have worked closely with the Sales & Trading Desk, Quant Research/Modeling Teams, and Investment Banking Division.
• Some of my favorite activities include chess, classical piano, reading, and helping others. That's why I'm here!

AMA, and if I can answer, I will!

 

[Tapasbrk]

Dear @Tapasbrk ,

Thank you for your questions. I need a few clarifications:

Could you provide some specific examples of your understanding of financial concepts?
What quantitative subjects were you most interested in during your studies?
What does "quantitative understanding of financial concepts" mean to you?
What do you find interesting about statistics and business analytics?

Here's why these questions are important to me:
I want to see the foundation you have in order to know how best to build on it.
Your goals, plans, daily activities, and habits can't be evaluated in isolation from one another.

Best Regards,
Olga

Hi Olga, thank you for reverting back.



When I say financial concepts I would refer to the concepts covered in CFA level 1.



Quantitative understanding means to me the the mathematical framework which backs the financial concept. For example in valuation of options, I would be quite interested to understand how the black scholes model works or how it is derived.



Within statistics and analytics, what I like is how we can make out a story or how we can use data to understand the problems. For example we had a course of business analytics, what I found interesting is how we can make marketing decision or financial decisions through predictive analysis. I just found the processes utilised in the subjects very logical and made sense and thus enjoyed studying it.

 

[Olga Inglis]

Hi Olga, thank you for reverting back.



When I say financial concepts I would refer to the concepts covered in CFA level 1.



Quantitative understanding means to me the the mathematical framework which backs the financial concept. For example in valuation of options, I would be quite interested to understand how the black scholes model works or how it is derived.



Within statistics and analytics, what I like is how we can make out a story or how we can use data to understand the problems. For example we had a course of business analytics, what I found interesting is how we can make marketing decision or financial decisions through predictive analysis. I just found the processes utilised in the subjects very logical and made sense and thus enjoyed studying it.

Dear @Tapasbrk ,

Thank you for your response!

I strongly recommend that you read "My Life as a Quant" by Emanuel Derman, and "The Complete Guide to Capital Markets for Quantitative Professionals" by Alex Kuznetsov.

When you say "what I like is how we can make out a story or how we can use data to understand the problems" I see a genuine enthusiasm and curiosity for the field you want to enter. It might sound strange, but unbridled hunger and respect for education will give you an edge over things you perceive as "lacking."

Simple math can at times differentiate hype from reality.
Don't underestimate the power of the pure thought in the union with predictability and logic of science.

Avoid thoughts like “I think I am already behind” cloud your perspective.

Please contact our wonderful Admissions Office for the detailed requirements to apply.

The Best of Luck!
Olga

 

[Tapasbrk]

Dear @Tapasbrk ,

Thank you for your response!

I strongly recommend that you read "My Life as a Quant" by Emanuel Derman, and "The Complete Guide to Capital Markets for Quantitative Professionals" by Alex Kuznetsov.

When you say "what I like is how we can make out a story or how we can use data to understand the problems" I see a genuine enthusiasm and curiosity for the field you want to enter. It might sound strange, but unbridled hunger and respect for education will give you an edge over things you perceive as "lacking."

Simple math can at times differentiate hype from reality.
Don't underestimate the power of the pure thought in the union with predictability and logic of science.

Avoid thoughts like “I think I am already behind” cloud your perspective.

Please contact our wonderful Admissions Office for the detailed requirements to apply.

The Best of Luck!
Olga

Thank you Olga for the guidance. I would for sure follow it.

 

[matthewzz]

Dear All,

I am proud to be a Career Coach for the Master of Financial Engineering program at the UCLA Anderson School of Management.

• I hold a B.A. in Mathematics and a B.A. in Economics.
• I have held various positions on Wall Street for a decade

I was wondering if you could tell me why most MFE alums don't end up on the buy-side at HF/prop's, and instead opt for sell-side pricing/risk quant positions at banks? I'm other than S&T algo trading desks, and some quant strat positions, I'm not eager on getting a job on sell-side, as I'm already working as a BB AM FO analyst. Cheers.

 

[MikeLawrence]

I was wondering if you could tell me why most MFE alums don't end up on the buy-side at HF/prop's, and instead opt for sell-side pricing/risk quant positions at banks? I'm other than S&T algo trading desks, and some quant strat positions, I'm not eager on getting a job on sell-side, as I'm already working as a BB AM FO analyst. Cheers.

A: There are fewer of these roles available.
B: The requirements, expectations, and experience needed are more stringent.
C: Everyone else wants these jobs: competition is stiff.

 

[QuantCoach]

I was wondering if you could tell me why most MFE alums don't end up on the buy-side at HF/prop's, and instead opt for sell-side pricing/risk quant positions at banks? I'm other than S&T algo trading desks, and some quant strat positions, I'm not eager on getting a job on sell-side, as I'm already working as a BB AM FO analyst. Cheers.

Short answer is they're not good enough whether it be actual skill or profile so they have to settle for less competitive positions. If given the choice to work on the buyside at top HF/prop vs pricing/risk quant positions at top banks, very very few people would choose the latter.

 

[MathMan]

Hi Olga,

I am currently a Math major from a top liberal arts undergraduate college. I love math and have all of the math classes completed (except for one I'll be taking this upcoming fall semester) that most of these MFE graduate programs require as prerequisites. I am currently interning in finance in NYC just not in the quant. For someone who really loves math but yet also the business side of finance, would you say it's worth prepping for the GRE exam this summer to apply to MFE programs. Here's a scenario that keeps me a little hesitant from fully committing to applying to many of these MFE programs: let's say I complete a MFE program and have been doing some of the quant industry work for a little bit after graduating from a MFE program, but now I feel like switching things up career wise. What are some opportunities and positions that a MFE degree and experience in the quant field can get me that is still in finance but maybe just not on the quant side?

Thanks!

 

[Olga Inglis]

Hi MathMan!

Thank you for your email!

I was happy to read about passion toward theoretical math . Theoretic math for me is the foundation of the house. The house will collapse at some point if its base isn't robust enough.

Speaking from experience and observation, you don't have to be a quant to leverage your strong math skills. You can trade exotic products (like credit derivatives), of course. You could also be on the sales side. The possibilities are endless when you truly speak math.

Investment banking is an option, but it might not fulfill your desire to use math extensively. Fixed income research could be a good fit. Other possibilities include Treasury bond futures, bond options, CMOs, insurance, etc.

The key point is this: your math skills will help you differentiate between hype and reality. The pure thought and logic that math offers will give you AN EDGE.

Now is the time to explore where you belong: company-wise, group-wise. What work for YOU. Widen your awareness through exploration. Before entering the field, do your due diligence thoroughly and network to see what others around you are doing (offer help if you can).

For example, you can switch from investment banking with your MFE degree, but the reverse is not true. Investment banking might be where you feel most comfortable and productive, or not.

I don't have a crystal ball, but here's something to consider (which might be a bit biased since I was a math undergrad like yourself):

Believe me, there are plenty of positions open to someone with a strong work ethic, a good head on their shoulders, and an MFE on top of it all.

Here are some specific Quant positions, different from one another:

• Asset Management / Portfolio Management
• Desk Quants
• Risk Management
• Research and Strategies
• Consulting (which actually employs professionals with expertise in various areas, including finance, accounting,and strategies)
• Valuations
• Research
• And more!

(Examples of consulting companies are EY, KPMG, PwC)

I may have left you with more questions than answers. However, graduating from an MFE program will give you an edge in any area of finance you eventually choose.

Remember, your first full-time job is highly unlikely to be your last as you evolve professionally and personally. Just make sure you do your due diligence, don't cut corners, and show up with a positive attitude to work. You will spend ore time with your colleagues than with your friends and your family! People want to spend the day with someone likable . And, of course, reputation matters. It is a small world.

Best of luck!
Olga

 

[Olga Inglis]

I was wondering if you could tell me why most MFE alums don't end up on the buy-side at HF/prop's, and instead opt for sell-side pricing/risk quant positions at banks? I'm other than S&T algo trading desks, and some quant strat positions, I'm not eager on getting a job on sell-side, as I'm already working as a BB AM FO analyst. Cheers.

Hi Matthewzz!

While asset management companies handle large investment portfolios, hedge funds are smaller, with teams typically ranging from just 2 to 200 people. Their main goal is to generate profit through active trading, rather than simply following a pre-defined investment strategy.

Hedge fund traders often come from sell-side backgrounds, who want to strike on their own. They rely heavily on sophisticated internal models, called proprietary trading models, to identify profitable opportunities or to put it better, GIVE THEM AN EDGE.

Hedge funds often employ someone internally for the quant role, and at times search for someone with plenty of experience and a perfect fit within a small group.

Hope this helps!