Quant Finance is Dead!!

[martingaletrader]

With the regulatory changes and capital requirements, future for quant finance and quant careers is doomed. All banks are cutting back.

Too many MFE programs. CS, UBS, and a host of other banks including GS will be cutting jobs. It is looking bad. The crises and neurosis in the markets mean that roles and opportunities for quant people are dwindling.

 

[bansalmohit]

i would not say dead. What i think will happen is that only the best in both technical and personal skills will be able to get good jobs. Personal skills will become lot more stronger component than it was while hiring

 

[bigbadwolf]

i would not say dead. What i think will happen is that only the best in both technical and personal skills will be able to get good jobs. Personal skills will become lot more stronger component than it was while hiring

That's already the case. M is saying it will become even more so. In addition, the political climate is changing and what impact that will have can only be negative.

 

[gbruno]

Oh, it's that season of the year again. Quant finance is dead!

Well, quant finance is alive 'n' kicking! Think of quantitative Risk Management in response to increasing regulatory demands. Especially US Banks, that have not implemented Basel II yet, still have lots of (quantitative) work to do should they decide to implement regulatory requirements with quantitative models.

Quant finance may be dead in a field like exotic derivatives and the like, but demand for risk quants may well increase. It's up to you whether you would like working in such a field, though!

 

[alain]

it's not dead. It's shifting. So, you adapt or you die. It's like evolution...

 

[D C]

Death implies birth. I agree with alain, it's just changing form, it's a new game with new rules. Ripe for new opportunity!

 

[Sherlock]

martingaletrader are you adaptable or integrable?

 

[Lin]

I think a pertinent question would be whether the MFE programs are adapting in sync with the changes in quant finance.
Otherwise what you'll have is a whole lot of mfe grads with obsolete skills, confused and clueless

 

[JesseLevermore]

Ya the fact that banks have to shut down some of their groups means that people will leave and start their own groups. Not to mention it is only a matter of time before more business sectors begin to see the importance of an employee who knows statistics programming and economic analysis. After reading about madison avenue and the tech spaces I think if more employers had access to these programs they would be happy to hire MFE grads.

 

[soliton]

martingaletrader are you adaptable or integrable?

hahaha...he cannot be integrated if he's not adapted (at least not with ito integral )

 

[Andy Nguyen]

This reminds me of the dying-breed of floor traders who have been warned "open outcry trading" is dead when trading is done via electronic exchanges. If you are one trick pony, then regardless of MFE or PhD that you have, you will have a hard time. Or you need to change your mindset and adapt like this former trader who now is driving a yellow cab in New York.
As long as Wall Street still drives the economy of NYC, it will provide jobs to ten of thousands of people with the right skillset, MFE grads included.

 

[figoliuxi]

Come on Genius! Have you remembered how CDs was born? How CDS was born? This is a field filled with innovation. Regulation becomes heavier and heavier, which means it require those Quants, or us MFE students, to create more efficient and eligible way to do investment and to make profit. Chance is there, just go and hold it!

 

[martingaletrader]

Dwindling. It is all well and good to be optimistic but when bank capital and regulatory changes are painful the role of quants is limited. I would say more jobs for lawyers and such and less for quants doing risk management or regulatory capital type of stuff which is not rocket science. There will be jobs but how are MFEs adapting.

Some programs haven't changed at all.

 

[Andy Nguyen]

Do you have any advice on a course of action that MFE aspirants and programs can take instead?

 

[Dexterrrrrrr]

Naive