What are the advantages when we compare Quantitative Finance and Quantitative Economics? How likely can a quantitative economics student find a job in the industry compared to quantitative finance?
@ecmaEditors @economics @CQFInstitute @LSEeconomics
Both are different Pathways leading to different roles in the economy!

•QF - Quantitative Finance will make you more employable in the financial services industry and across (Financial Risk, ERM, Insurance, Actuarial Finance and Derivative Modelling) consulting sectors.
•QE - Quantitative Economics will enhance your chances of getting hired across the research arms of the financial services industry or the (Civil services) bureaucracy, & /or it further enables you to do a PhD in Mathematical Economics / Econometrics, etc.
Normally, QF and QE roles interface at Retail Banks, Hedge Funds, Investment banking firms, Pension Funds, Life/ Casualty Insurance and other types of specialized asset management companies, etc.
Hard to say, as to which academic qualification gives you an outright cutting edge, but I guess Quantitative Economics will make you more employable and preferable in the academic sector, whereas the Quantitative Finance Degree / Qualification, will enhance your prospects
Normally many Econ Graduates end up with CQF or a #CFA/ FRM/ CERA qualification, because their education prepares them for a completely contrasting (teaching/research) role, ideally at some university or a civil services department within the Public Sector.
Whereas, QF / Financial Engineering will give you the much needed “hands-on experience “ of readily transferring your knowledge and skillsets at the Micro-enterprise level, which usually could be a Commercial bank or a mutual / hedge fund style investment company.
The taxonomies used by professionals in either of these programs are more or less the same, and they are not mutually exclusive!

There is this cross-fertilization of concepts and ideas taking place across both subjects (QE and QF/ #Financial #Engineering).
It also depends on where you have obtained your degree(your university/ business school) and what courses/electives you have studied. If you do your QE degree with electives such as Game Theory, International Trade Economics, Advanced Microeconomic Theory, Industrial Economics,
Labour Economics, Public Finance, and other peculiar Economic courses such as CGE - Computational General Equilibrium Models and so on; perhaps, you won't be able to justify & simplify your work/analysis in the financial sector with the same level of comfort.
It is easier for #bankers and fund managers to understand financial terms and taxonomies instead of Economic jargon.

This is based on my personal experiences gained over these years.
You, with your highly theoretical and pedagogical terms and taxonomy, in “#Economics”, might also create problems for your unit head aka “reporting line”, who at best might be an #MBA, a Diploma holder in Banking, or some MSc in Finance/ Acct kind of discipline.
Normally, banks and FIs, promote those who are street smart and get things done on time.

That is a different debate for a different day.
Got my hint?

So, choose your electives and specialization path within the two programs in a wise way!

Good Luck.

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More from @SAH16928046

Jul 24
Will data science overcome quantitative finance in terms of employment and salary?
@CQFInstitute @datafitter
Well, I think you are asking a relevant question.
It can be explained using a Social Darwinian Perspective.
First, the Simple answer =>
YES, => Quantitative Finance, will get absorbed into Data Sciences and Machine Learning Areas as a sub-field.
WHY?
Because many subjects develop independently, they get assimilated into the much larger disciplines or subjects which offer more attractive career remuneration, research opportunities, social status, social mobility and scholarly following and readership.
Read 16 tweets
Jul 24
Some of the best universities/ business schools to do a #PhD in #Finance =>
1. @LBS
2. @Wharton
3. @INSEAD
4. @ChicagoBooth
5. @MIT
6. @LSEfinance
7. @BerkeleyMFE (Quantitative Pathway)
8. @StanfordGSB
9. @NYUSternRisk
10. Columbia Business School (Financial Engineering)
This is not an exhaustive list.
I am just sipping coffee and writing this tweet.
There are many other institutions which might be damn good.
@Harvard Business School is the best for Business econs / #DBA.
Other Ivy League universities not aforementioned have superb PhD programs.
@Columbia offers MSc Financial Maths and MBA.
Financial Maths Degree was a conjoint project undertaken by Industrial Engineering and Operations Research Departments (plz check the website now)
Great if you want to do a Quantitative Finance PhD sharing expertise of different depts
Read 6 tweets
Jul 23
MSMEs do not have the technical acumen or the human resource expertise to produce documents which are required by financing institutions.
The most difficulty comes to producing and presenting cash flow statements.
Some potential borrowers cannot compute cash projections
Especially Micro and Small Firms, which are managed informally by households, usually do not maintain proper book-keeping and accounting systems.
Banks have to use their own historical loss databases to compute credit metrics such as PD, LGD, EAD,etc.
And most of them have errors
Demographic and Geographic indicators can play a role in assessing and evaluating credit risk management, especially during the loan examination phase.
Sectoral Loan Risk Data can be aggregated to compute Risk Measures.
#Saunders FI-Risk management has a chapter dedicated to it
Read 5 tweets
Jul 12
I remember starting my career as a junior derivatives dealer.
The first stupid question I asked was why currency dealers use par-curve yield curve rates to compute FX Swap points?
No "#boostrapping"?
The Chief Dealer/ Head of FX Linear and Cross Currency Rates was not pleased.
Actually asking stupid questions early on in our career helps.
Provided you have a tolerable boss who can entertain stupidity.
But, if you ask questions which threaten your reporting line, then you are cooked!
Done.
Find your next job asap.
My CRO - Chief Risk Officer, was a banker who didn't know maths and statistics.
The man was a nightmare proposition for the academically tuned young graduates
Poor chap begged me to not bring my work to him because he could not check it.
Read 6 tweets
Jul 12
Should you pair #Finance with #Economics or #Accounting?
If you want to work in a general finance department, Accounting and Finance combination is beneficial, you can presumably learn a bit of financial auditing in this way.
@LSEfinance
If you want to work in Financial Markets, then Economics and Finance blend well.
But do note: that Economics is more mathematical.
Students who are weak at Maths, generally opt for Accounting or some other subject.
But having said that, if you don't like Maths at all, it might even be more difficult for you to do Quantitative Finance Modules at a higher level. So your aptitude and interests in Mathematics shall determine the outcome.
Read 5 tweets

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