Does the Practice of Quantitative Finance Need to Be Changed?

Academics and industry experts discuss how financial innovation and quantitative models contributed to the financial crisis. Featured here are Paul Glasserman of Columbia Business School, Emanuel Derman of Columbia University, Daniel Beunza of the London School of Economics, Kent Daniel of Goldman Sachs and Adam Parker of Sanford C. Bernstein & Co.

This panel was part of the research symposium "The Quantitative Revolution and the Crisis," co-hosted by the Sanford C. Bernstein & Co. Center for Leadership and Ethics and the Center on Japanese Economy and Business at Columbia Business School. Learn more at www.gsb.columbia.edu/leadership/research/dec2009

Category:

Education

Tags:

• quantitative
• economics
• Columbia Business School

[lvgcoolman13]

@gwalia4 True but I think that a PHD in applied math is a better route to quant finance because there you can take courses in mathematical physics (PDE's, numerical PDE's), probability meseaure theory, mathematical statisitcs, and of course electives in mathematical finance. The beauty of math is that you can proved each mathematical reasoning and make it into something useful. Some physicists in my school can't even proved the basic laws of sines, cosines, Pi. They just blindly solve problem

[gwalia4]

@lvgcoolman13 Phd in physics also gives you a great ability to think logically. Logical critical thinking is very essentail for any advanced degree. Calculas is nothing but a tool to explain physics and how things work in nature. Finance is also a subset of nature and how humans can help maximize utility

[lvgcoolman13]

I would rather attend to a phd in applied math with electives in mathematical finance. Anyways the wilmott certificate is not a professional designation such as CPA, CFA, FSA. What I am saying is that it would be a great Idea if they create a professional designation alike to that of FSA (actuary) for quantitative analysts where they can take like 8 exams in order to prove their competent knowledge and to be recognized as fellow professionals.

[CheaterNLaw]

@lvgcoolman13 sorry points=pounds. Was watching eurovision, lol.

[CheaterNLaw]

@lvgcoolman13 but Wilmott has already done that. Its called Certificate in Quantitative Finance and he runs it. It costs 12k points to attend. Sure its not that well known among the masses, but top companies does recognize it as a big + on your CV. A PhD in physics teaches you nothing about finance, just some tools to quantify price movements(Brownian motion). the question is really do you need to go THAT deep into Physics to be proficient in applying quantitative methods in finance?I think not.

[lvgcoolman13]

I wonder why they haven't created an organization and implement professional exams to certify quantitative analysts. Just like the actuarial organizations does. This will guarantee that the candidate is truly capable of performing a certain task. Interview questions is not enough to certify an analyst. In some cases a degree is not good enough either. For example in the actuarial world if the candidate gets a masters/Phd but can't pass exams, then he is incompetent. What do you think?

[CheaterNLaw]

@lvgcoolman13 if being a quant is really what you wanna do with your life, if you are interested in PhD in math solely because of math's application to finance rather than other problems that exist in maths, then MFE is the way to go. there is, indeed, a stereotype that you need a PhD to get a quant job. I dont agree and I have many friends who work as quants without it. bachelor in physics/math and MFE should be enough for a junior quant.

[lvgcoolman13]

@CheaterNLaw What about MFE vs Phd in math

[lvgcoolman13]

I am a math major BS. I might look forward on mathematical finance. Right now I am working on the actuarial exams. They are somewhat helpful in this field of quantitative finance.

[lvgcoolman13]

just 4 comments!!!