Why do an MFE?

[Aleksandr]

I am very interested in finance, and I am completing a bachelors in mathematics and economics, but my question is, why get an MFE? I was looking extensively about information dealing with these programs (Columbia, NYU and Baruch are three programs that I am looking at), but I am unsure about doing it. Why?

It seems that getting an MFE is like a trade school but in the masters degree sense. Furthermore, why would a hedge fund or bank hire someone who has an MFE over someone who has a PhD in mathematics, economics or finance? All these disciplines require a lot of math and the markets are covered thoroughly for a longer period of time (except with mathematics).

What I am getting off these message boards is doing math classes in undergrad and doing some math classes and programming dealing with finance in the masters field is up to par with getting a mathematics bachelors degree and doing mathematics for 4 years afterwards or getting a math degree and doing economics 4 years after.

Can someone answer this question for me? It would be very appreciated.

 

[bigbadwolf]

It seems that getting an MFE is like a trade school but in the masters degree sense. Furthermore, why would a hedge fund or bank hire someone who has an MFE over someone who has a PhD in mathematics, economics or finance? All these disciplines require a lot of math and the markets are covered thoroughly for a longer period of time (except with mathematics).

Two separate questions here. The oblique answer to the first is that in doing a good MFE, you are learning a lot of material very rapidly in a sink-or-swim situation and contending with a lot of other students who are at least as good as you, if not better. This kind of intense competition and intense stress provides a foretaste of what quant work will be like. And it indicates to employers that you can deal with competition and stress.

The answer to the second question (which was tacit) is that quant employment isn't looking very rosy at the moment, and may not ever recover to the levels seen two or three years ago. Given a choice, an employer would probably prefer a Ph.D with years of serious computing work, and in-depth knowledge of applied math. Other things equal, I would. And there are enough competent Ph.D.s in the market to choose from.

Hope I've answered your question(s).