Great concerns about MFE degree

[Penglu]

Hi all, I am right now applying for some MFE programs. The more I understand the program, the more uncertain I feel about the program. In the past, I feel financial engineering is essential in increasing market efficiency through the developments and implementation of different financial instruments. But now, it seems like the financial engineering has been a very matured fields. For a master in computational finance, everyone is just expected to do some routine type of jobs. Just like buying a stock, when everyone has invested in it, the return has been driven down.

So I feel the current trend is for people to come up with more exotic models which could pick up very marginal profits from the already established system. And that, I believe, really requires some ingenuity, and without years of understanding of previous models, it is very unlikely to attain. Also, from an investor's point of view, may be timing is more important than methods. I am sure there are some people made a fortune in the 2007 crisis without any understanding of those advanced mathematics.

I really want to become a good investor in the future, instead of someone writing endless code. Do you guys think MFE could lead me into that direction as well?

My rationale for applying for a MFE degree is very simple. I come from a LAC, which is often unheard of in the job market, but famous for sending students to top graduate schools. I am good at mathematics, interested in finance, and have a passion for business, but found out it is really hard for me to get into even interview stage from any big companies. Good MBA program usually requires sound working experience, and since I am unable to get into any investment bank type of jobs, going to MBA may not be very realistic for me. Also, Master of Since in Finance, except Princeton, seems to me, is not as good as MBA in management aspects, and is not as good as MFE in quantitative aspects. So I feel a good MFE could be a possible choice for me after I graduate next May. But the worry is as what I have said, end up my life in writing codes and doing maths.

I hope I have expressed my concern clearly, and sincerely hope someone should shed some lights on my issues. These days I am really struggling in applying to different programs. Thank you all!!!

Best

 

[Andy Nguyen]

When you put too much expectation on a master program that is 1-2 year long, where majority of applicants are fresh graduates, then don't beat yourself up if you have a broken dream (and potentially broken wallet) at the end.

For many people, as long as they can get a Wall street job, making more than 99% of their highschool class, then it's a dream. What they actually do or whether they like it is not an immediate concern.

The nature of FE involves coding, whether you like or not. Instead of avoid it and deny yourself of potential marketable skills, you should embrace it. The difference between a good program and a better one is how much better you come out of it and if you pick up the right technical skill set.

No MFE program will make you a good investor. It's a process and a life long experience where you learn from mistakes. MFE will give you some specific skill set, how you use it is up to you.

I'm not advocating for MFE, MBA or any degree for that matter. Education is something you do for your lifetime investment and something that you can use at every point.

If you are not comfortable with doing lot of programming as part of the MFE experience, then i would not recommend you doing so. Life on Wall Street isn't that rosy. If doing HW programming is boring to you, don't expect exciting things awaiting you on Wall Street.