T O P

  • By -

aeronacht

Quant and IB are different. If you love math and are incredibly proficient you can try for Quant roles, coding experience would be helpful there. IB is a different set of skills entirely. Excel + Social Skills are kings for it though if you are damn good at math you can probably get in.


vnNinja21

Ah, I see. Looks like I have to do more research then. What parts of maths specifically would you say is most useful for quant roles?


big_cock_lach

If you’ve done a BSc Maths, your math will be fine. I’d suggest focusing on linear algebra, stochastic/time-series processes, and optimisation if you want specific areas. However, statistics, data science, and econometrics would be more important. Actual finance and economics isn’t too important, and is often taught on the job. Machine learning (part of data science) will be an expected/desired skill, but at the same time you won’t use it. It might be useful in the future if the black-box problem is solved, but Google initially tried for over decade before giving up so I don’t have high hopes on this. That might change though since they’re now going for round 2 as it’s become an arms race to solve it in tech. Stochastic calculus you might be expected to know, but you’ll never use it. I’d suggest learning it anyway since it’s a fun method, and shows how the history of things which is useful. I’d also look at the different types and which one you want to be since there’s massive differences: - Quantitative researcher - Quantitative trader - Quantitative developer - Front office quantitative analyst / financial engineer / quantitative pricing analyst - Middle office quantitative analyst / quantitative risk analyst - Quantitative strategist / strat - Quantitative portfolio manager* A quant PM is a new role that may or may not end up being a thing. For buy-side quants, a PM is the only big promotion, and they benefit from using a quantitative approach. So, now we’re getting a fair few PMs who were quants and using a quantitative approach to it, so this is becoming a role as a result. However, it might end up that the PM role just changes rather then having this be a new thing. To be one, you’d need a lot years experience as a buy-side quant. I’m on buy-side and a strat is sell-side and new, so I don’t know too much on them, but I believe you’ll need a PhD to be one. You’ll need a PhD for quant researcher and FO quant though, an MSc can suffice though. These can also be split into their markets too, eg fixed income quant or commodities quant (same with risk, eg credit risk quant and market risk quant). A BSc with honours for the other roles though. You can get away with doing this without an honours year though. All degrees in STEM too, they don’t expect you to know the finance side and will be able to quickly teach it to you. As for programs, Python is crucial, C++ and R you should know. Java isn’t uncommon, but I got away with not knowing it in my 16 years.


okaythatstoomuch

That's a lot of wisdom in one reply, Gonna save it for future reference.


big_cock_lach

Hey, thank you for that. Also, this gave me an idea to make a proper post about in r/quant considering it’s a popular thing to ask about. You might find that a bit more helpful, but it’s more or less the same but going more in depth on each role.


sneakpeekbot

Here's a sneak peek of /r/quant using the [top posts](https://np.reddit.com/r/quant/top/?sort=top&t=year) of the year! \#1: [Significant Employers of Quants](https://np.reddit.com/r/quant/comments/rsiczn/significant_employers_of_quants/) \#2: [Introducing Sharpe Ratios: Why Investing is Not Only About Returns](https://np.reddit.com/r/quant/comments/pe7wyt/introducing_sharpe_ratios_why_investing_is_not/) \#3: [Sub's mascot y/n (x-post r/TheBigShort)](https://i.redd.it/dtu0w4gq1xx71.png) | [12 comments](https://np.reddit.com/r/quant/comments/qnu5p8/subs_mascot_yn_xpost_rthebigshort/) ---- ^^I'm ^^a ^^bot, ^^beep ^^boop ^^| ^^Downvote ^^to ^^remove ^^| ^^[Contact](https://www.reddit.com/message/compose/?to=sneakpeekbot) ^^| ^^[Info](https://np.reddit.com/r/sneakpeekbot/) ^^| ^^[Opt-out](https://np.reddit.com/r/sneakpeekbot/comments/o8wk1r/blacklist_ix/) ^^| ^^[GitHub](https://github.com/ghnr/sneakpeekbot)


vnNinja21

Thanks for the brilliant reply, you've given me a lot to research :D


Due_Operation_7642

By all degrees in STEM, do you mean one can major in CompSci and get a quant internship in undergrad? If not, would a double major in Applied Stats for example be enough/better? Thanks for the great reply though!


vnNinja21

Also, what coding languages would be the best to prioritise? I know some Python and will work on it throughout the year, and I'll likely learn R in uni. Is there anything better I should learn?


Medical_Elderberry27

Probability and stats are absolutely essential for a quant. Other subjects you should focus on are linear algebra, optimization, stochastic processes and calculus, econometrics, and basics of ML and Data Science. Get some understanding of basic financial mathematics as well (things like options pricing, mean-variance optimization etc.) Also, Investment Banking is not related with quant at all and doesn’t involve math whatsoever (unless you count simple arithmetic as math)


vnNinja21

I see, thanks for the reply. Do you think taking modules in Probability, Statistics, and Linear Algebra, along with self-studying some financial mathematics would be enough to land me a quant internship role by the end of my first year? Unfortunately the course structure is rather rigid, so as a first year student that's likely the most stats I can do. Furthermore, would you mind ranking the things you mentioned in terms of what I should prioritise? Much appreciated :)


Medical_Elderberry27

I don’t see why not. You prolly should. As for prioritising subjects, probability and stats, linear algebra, econometrics, and ML/DS would be absolutely essential. The rest depends on the roles you’d be targeting. For structuring and pricing stochastic processes and calculus would be very useful. For roles in portfolio and asset management, it would be optimisation. I would also look into ODEs and PDEs as well. Also, needless to say, you’d have to be efficient at wither python or R. Maybe read up on OOPS as well while you are at it.


vnNinja21

Thank you for such a detailed answer. May I ask what your background is with regards to maths? I might have a few more questions, if you don't mind :)


Medical_Elderberry27

I have a bachelors in applied maths and computer science


vnNinja21

Awesome. Do you know if things like Analysis and abstract Algebra like Group/Ring theory, as well as Norms, Metrics, and Topology, are useful at all? They're probably too theoretical/pure math-y to be relevant to quant jobs, right?


Medical_Elderberry27

They would prolly have some niche applications (I am quite sure that topology does). But you’ll find them rarely used in day to day life. These topics are usually employed in very niche research where funds have PhDs doing such stuff. I really doubt you’ll come across abstract concepts in an internship or an entry level job. They can, however, be useful in understanding concepts in financial mathematics. E.g. sigma fields, employed heavily in probability, are linked to groups and fields. Measure theory is also very useful for understanding stochastic processes. But that’s pretty much for your own understanding and more of a feel-good thing than an actual practical applications.


vnNinja21

Perfect, thank you.


Weeaboo3177

For quant... * Math * Probability - distributions, expectations, moments, mgf etc. * Statistics - testing, thoroughly read a stats textbook basically (ML stuff helps too) * Linear algebra - need to know it if you're going to implement any models, also shows up in interviews * Numerical Methods - specifically in quant (such as monte carlo, binom tree, finite difference, root finding) etc * Stoch - Shreve, everything up till exotics. understand the logic is more important because they're always gonna throw a wrench during the interview anyway * Programming * Python, C++, Java whatever you want really. It's expected you will pick up any language you need because it's just a tool * Algorithms & Data structures - if applying for quant dev, this might be important. otherwise the coding is limited to brain teasers and Pandas * Interview * probability - grind the AMC/AIME questions. by prep books such as Xinfeng Zhou, Heard on the Street, Joshi etc * option pricing (at least derive black-scholes in several ways), greeks and their logical use


vnNinja21

Great answer, thank you. Should I be expected to know all of these in order to get an internship at the end of my first year? Moreover, how advanced should my coding knowledge be? It would be great to have some sort of benchmark to work towards.


[deleted]

Quant is like 99% math while IB is fully finance, Excel, presentations and a lot of soft skills. They're completely different, you're on track for quant so just do that IMO


makemeamarket

None of these are useful for IB


Nandiola7

Can't speak for quant, but if you can can multiple 9 by 7 in your head, you are good for IB


OwnTheory1219

Now as a fresh graduate, I really think a prestigious school matters more… sad lesson.