Vkaul said:
Thanks Andy. So the model validation group same as structurers group?
No, they are different. Model validation is backtesting, questioning assumptions, trying to break models, trying to see when they will give weird answers, trying to uncover when things will go wrong before they actually do, etc. It's mandated by the gov that banks do this (as well as in the banks' own self-interest), so these groups tend to persist through the layoffs, and most of the people I know in them are smart, less stressed, and less rich than the front office. Often, it's the same group as the model-building group, but not always at the very biggest banks, where they are sometimes aligned with risk management groups instead. Better know how to read other's code.
Structuring deals is more front-office-ish. It's about creating business, getting the deal done, getting what the customer wants to the customer, with the correct timing, tax consequences, etc. It's more "pure" financial engineering. Tends to be high-paying and more volatile with banking cycles, in my view. Better know how to write code, which others in the validation group will read.
