From Regulatory Modeling to Capital Market?

[pinkninja]

How difficult it is to transfer from Quant Regulatory Modeling to Capital Market Modeling?

My background:

• I have a bachelor's degree in finance and a MFE (not top-tier programs such as CMU or Berkeley).
• I don't have an excellent GPA; still above average (I had a hard time in MFE given my undergraduate finance major, but I picked things up quickly by killing myself on a daily basis)
• 2+ years in Quant Risk Management, basically CCAR credit risk and interest rate risk management. I have developed some models, performing pretty well so that they are also used by Treasury and FP&A.
• Experienced in data manipulation.
• I am a good R programmer, and good at other tools such as Matlab, Stata or SAS, but I don't think I am a good developer with C++/C#/Java.

However, speaking of investment or portfolio management, I don't have any professional experience. My long-term goal is leveraging what I have learned in MFE program, doing things like portfolio management, stochastic derivative pricing or stock selection. But all the calls I get from recruiters are pretty much for CCAR credit risk or other kinds of middle office risk management positions.

I like change, even though sometimes it means killing myself to do something I am not experienced in. I like doing quantitative research and modeling development, which I realized too late. After graduation I still devote most of my after-work time to reading, research and learning quantitative skills, and pursuing CFA charter. I have already outperformed some of my PhD colleagues at work by getting promotion within a year, but I am still want to move forward to my long-term goal.

How possible it is for me to move to capital market? Should I wait? Should I go for another degree? Is 2015 a good year to make the move?

Any kinds of career advice are appreciated! Thanks very much.

 

[Ken Abbott]

My long-term goal is leveraging what I have learned in MFE program, doing things like portfolio management, stochastic derivative pricing or stock selection. But all the calls I get from recruiters are pretty much for CCAR credit risk or other kinds of middle office risk management positions.

This is tantamount to saying that you're interested in either oilfield maintenance, becoming a CPA, or playing oboe in the NY Philharmonic. You're going to have to focus a lot more.

Right now CCAR and other "middle office risk management" areas are where the jobs are. This may be the only area in finance that is expanding. The business has changed fundamentally over the last few years and the semipermeable boundaries between areas is becoming more and more impermeable.

 

[throll]

speaking from experience you should try to move asap to a quant risk model development role dealing with IMM/CCR and regulatory CVA. Banks are currently moving to a model where front-office CVA models are also used for IMM stuff. to me this is now the only quant risk role that have a good and healthy interaction with FO. you might be able to jump ship to FO either internally or externally. you should up your game in c++ and be ready to be interviewed anytime. the aim is to stay there no more than 1.5 years. ideally after 1 year you should look for a new role in FO.

it's going to be hard though but your luck might turn anytime and you might get FO interviews so be ready.