Usefulness of a Prior International MBA

[Wowbagger]

Folks,

I have been accepted by CMU, MIT and am awaiting result from Columbia. Since these programs come with such high tuition costs, it seems that I have an important investment decision to make.

My profile in brief:

25 y/o Indian Male, hold a bachelors in Computer Science and an MBA in Finance from the Indian Institute of Management. Been working for the last two years as a structured products and options trader with an MNC Bank and later with the largest Indian IB. Have also cleared two levels of the CFA designation and hope to clear the third this June.

I would graduate in Dec '13 and would be primarily looking for derivatives Sales and Trading positions in the US. I would like to know if my prior MBA (getting one from the IIMs is a big deal, at least back home) would add any value in terms of a) a higher starting sal or b) increased probability of getting a job.

Your inputs are welcome - I'm actually in the process of creating an NPV sheet, so this information is required

 

[mfegrad]

a) most likely not.
b) sure, in that it might help your soft skills.

 

[Wowbagger]

Thanks, MFEGrad. Do you think it will at least open up new positions (MBAs are usually preferred for sales-typea roles, due to the "sophistication" they bring to the table) in say Derivatives/Structured Product Sales?

I've heard there are at least a few people at CMU who have an MBA from India/China. Any comments on how such people from your/senior/junior batch(es) fared?

 

[marina]

Folks,


I would graduate in Dec '13 and would be primarily looking for derivatives Sales and Trading positions in the US.

is it difficult to get these jobs with your current experience?

 

[Wowbagger]

In the states it is

 

[robopool]

I think the MBA would be very little value added. I would not focus on that.

 

[mfegrad]

Thanks, MFEGrad. Do you think it will at least open up new positions (MBAs are usually preferred for sales-typea roles, due to the "sophistication" they bring to the table) in say Derivatives/Structured Product Sales?

few thoughts here. it very well could. a lot of that will be on you, though, as sales teams don't recruit from mfe programs explicitly. a lot of times you'll get an internship rotational program and can specify that you're interested in sales positions. that said, given that most of your peers aren't looking in that direction, you very well might have a niche.

I've heard there are at least a few people at CMU who have an MBA from India/China. Any comments on how such people from your/senior/junior batch(es) fared?

the ones that i'm aware of were fine, mostly. that said, i don't know everyone's background so it would be difficult to generalize on the whole.

 

[Wowbagger]

robopool: Could you please explain why? I mean, the soft skills/business knowledge from an MBA is exactly what's NOT taught at an MFE program (at least explicitly) - surely that would go a long way in impressing employers and getting those jobs that are a little too quant for MBAs and a little too soft for MFEs?

mfegrad: Exactly what I had in mind. Thanks a ton, mate. Hope to graduate from CMU next year

 

[parminder]

Could u elaborate abt ur profile?
I mean which firms,graduation clg ?

 

[robopool]

Wowbagger: Well, it is just my opinion that quant jobs do not require a lot of "soft skills/business knowledge", it's not the personality that wins over the clients, it's the technical know-how and the clear presentation of ideas in ways that people understand. After all, the client is seeing a quantitative analyst for a reason: he is not looking to be smooth-talked by someone who has more business skills than quant skills, he is seeing a quant because he wants an explanation on how some model / algorithm/etc works. Otherwise he could see one of the people from sales, who have a marginal understanding of financial products but is quite charming. One does not need to have an MBA to have good communication skills; for example, there are plenty of very charismatic quantitative finance professors who are very good at explanations but do not have MBAs.

In this sense it seems to me that it is not very necessary. I think the biggest thing here is that you are truly good at the quantitative aspect.

 

[Will D]

IIM grads are really well-represented on the Street- the main reasons to go to a top business school are to brand one's resume with a prestigious university and to get access to on-campus recruitment. Many hiring managers at NYC banks know that the selection criteria for top MBA programs in India is intense. Since you made the cut, they are already more inclined to interview you.

A secondary reason to do an MBA is to reach out to the alum network. I'm not sure exactly how many people break into the industry from their MBA alumni contacts- my guess is not a whole lot. Still, the IIMs are a top brand in India (I've seen it a lot on Linkedin and I'm not Indian). Also, you have relevent experience so it is more a question of finding the right fit (product/desk/bank) rather than getting into a bank training program. As you know, S&T is highly sensitive to macro conditions and there is a considerable chance one may be unable to land an S&T job even graduating from Princeton, CMU, NYU, etc.

The MBA will certainly add to your profile, like a blue chip employer. Congratulations on your MFE/MFin acceptances.

 

[mfegrad]

Wowbagger

no problem. best of luck with cmu, if that's what you decide (and you should ). feel free to shoot me any questions or anything you have.

 

[bullion]

Haha I really really wanna join you at CMU. I'm slaving away on CFA 3 too. I am sensing all those gray hair growing already.

In terms of salary, you probably won't get higher salary through the traditional recruitment route. Recruiters go to CMU to fill specific junior role at certain pay grade. Your pay is also associated with management potential and established client base. But given your existing experience, you can probably advance faster than your average MFEs or interview for VP level job on a smaller team (so you dont have that much management duties) or get an internship for portfolio management during school, then your "starting salary" after graduation will be much higher.

Your probability of getting a job is definitely higher due to added options outside of traditional S&T, but not to the point of defying industry demand. I'm not familiar with IIM and how well it is represented in the States, but having a MBA alone "qualifies" you for many non-MFE positions. Soft skills unfortunately aren't as easily quantifiable as technical skills, and your business-savviness is probably best demonstrated through informational interviews or conversations with industry insiders at conferences and seminars.

 

[Wowbagger]

parminder: No I can't right now, haven't quit yet.

robopool: Thanks for replying. I am not aspiring to get into a hard-core quant research role, that's why I mentioned S&T. I agree perfectly with your explanation, but I think the exact opposite applies to the jobs that I am seeking.

Will D: Thanks for your post, mate. It answered my questions perfectly.

mfegrad: Will PM you soon.

bullion: I agree, salt-and-pepper will be just the beginning. Post-job search and graduation, we would be at least ten years older :D Good luck for your apping!