Actuary to Trader
I go to a non-target school and I am trying to get a job as a trader at a BB. I am looking into taking the first 4 actuarial exams as a way to gain a more quantitative/technical understanding of the markets. How do banks view candidates who have passed actuary exams and are the exams applicable to trading?
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Interesting question. I
Interesting question. I previously thought of becoming an actuary myself. Never heard of someone actually switching between these two careers. I would think taking the first two tests (probability and financial mathematics) would be a great help for trading (seem to be a direct connection to the base skills you'll need for trading). I forgot what the other two tests are on though. I know it takes a hell of a lot studying to pass those tests - a friend of mine studied her ass off all year and still didn't pass. However, don't let the studying interfere with networking and studying for your actual classes, two huge parts when coming from a non-target. If you don't have the time, I would think it wouldn't be worth it.
Can't say how banks would perceive the tests due to my lack of experience.
Just a thought on the two professions. Obviously, both careers are extremely quantitative. The main difference is the pace of work. If you want competition, a more challenging atmosphere, and a fast-paced work environment, actuarial science is not for you - the main reason why I didn't pursue it.
Just my two cents.
Thanks
for the feedback. The third exam is made up of two parts: financial economics (interest rate models, valuations of derivatives, managing risk), and life contingencies. The fourth is not as applicable.
My reason for thinking about taking the exams is because I am an accounting major looking to show banks that I have the quantitative abilities to be a successful trader.
A former head trader on our
A former head trader on our equity derivatives desk studied actuarial studies at uni. Not sure the path he took from there though.
Greg Coffey was an actuarial
Greg Coffey was an actuarial student from Australia and is now a trader, pretty successful I think. Think he went straight to macquarie bank after graduating. Not exactly sure though.
Don't know much about how banks view actuarial studies though.
Most are applicable
For the third exam, the financial economics part is all about option pricing, so if you want to go into the equity derivatives world it's very applicable. The life contingency part isn't too relevant directly but it still have some use when you evaluate credit risks (i.e. risk management).
The 4th exam is on loss models, I see this being very applicable if you are interested in stuff like Cat bonds, or anything that involves calculate the tail-risk of a security.
Overall, those exams takes huge amount of time, but your quantitative skills would be rock-solid. I know a few actuarial students went to middle office upon graduation, and one recently became a trader. Some others seem to be happy working at quants.
The CFA might be a better
The CFA might be a better bet to show interest, as would be taking the Series 7 ahead of time. Anything that will show that you have an analytical ability and a good attention to detail will suffice.
good luck!
DeltaHedged
www.deltahedged.com
"Since love and fear can hardly exist together, if we must choose between them, it is far safer to be feared than loved." - Niccolo Machiavelli
7
You need to be employed and sponsored to take the Series 7 and I'm not really sure that it would necessarily help you anyway. The material is pretty straightforward.
The CFA might be a better bet to show interest, as would be taking the Series 7 ahead of time. Anything that will show that you have an analytical ability and a good attention to detail will suffice.
good luck!
DeltaHedged
www.deltahedged.com
"Since love and fear can hardly exist together, if we must choose between them, it is far safer to be feared than loved." - Niccolo Machiavelli
its useless
I have 2 actuarial science exams...and have interned at a ny trading desk....
dont even bother...its no point...most of the traders don't really know what actuaries even do or appreciate the level of difficulty of these exams...
Plus most importantly... HR who'll scan your resume don't know a thing about Actuarial Science either...So you will not get any credit for it...
you'll never get that in-depth into the mathematics anyways on a trading desk...unless you want to be a quant or something....
Your best bet might be to take some math courses at your school that traders will appreciate...ie stats (probability/regression) and Bond math.... and puit that on your resume, it will probably carry the same weight...
There is nothing analytical
There is nothing analytical about the Series 7. Nothing.
to be a good trader, learn
to be a good trader, learn VBA. I mean, seriously learn and master it like a pro. all these stories about CFA, Series 7, Actuary, ... etc are crap. we want immediate-use of new-comers. I say from my own experience, that VBA programming is what really counts.
Yeh, Ive been learning VBA.
Yeh, Ive been learning VBA. What about technical analysis, would that help?