Hey all,
Despite my banana count, I'm not a new user. I've been on the site for some time, but wso locked my old acct on my work computer.
I'm a fresh undergrad(Dec 17') and started working at a large AM firm as a trading assistant on a FI desk. Although I know this isn't the most attractive entry level position, I believe it's a great opportunity considering my academics (non-target 3.1 gpa in Finance). So far, the position has been great. I've learned a lot and I'm surrounded by a lot of intelligent colleagues. However, obviously I don't want to be a TA forever. As with every other position at my firm, I'm in a 14 month contract until I can start applying to different positions within the firm.
My question is, do you guys think it would be beneficial for me to register for Dec 18 CFA® L1? Although not many of the traders have CFA® designation, all of the senior strategist's have completed at least L2. I initially wanted to be a FI trader, but after sitting on the desk, I'm not entirely sure if it's for me. With all the algos our firm follows, I feel like I'm in more of an ops position rather than trading. As of now I'm leaning more towards becoming a FI strategist or an alternative investment analyst at my firm.
How common is it to transition from a trading desk to an analyst position? Do you think passing L1 before my contract is up will benefit me while I'm applying for more senior roles?
It wouldn't hurt you. But it might not necessarily help you
Would you say L1 would be equivalent to going for a MSF?
I've heard that an MSF is basically just L1 and a portion of L2, so I feel like I would be wasting time with a MSF if I eventually got in to an analyst role and was required to complete CFA designation. I figure I might as well get L1 out of the way and then network my ass off within my firm.
I'm not familiar with an MSF so I can't say much. I guess, the cost of the CFA would probably be less.
If you are up for studying & spending money take L1 of CFA and just know it won't really open up any new opportunities. It's a bit of a prerequisite in some fields.
Again it won't hurt you & but probably doesn't help you much.
Appreciate the comments. I'm going with my gut and registering for L1. My firm covers the expense so I don't really have anything to lose. Cheers.
If they are willing to pay, take advantage, take it seriously, pass the first time
No. The majority of traders are unemployed by age 26 either due to mediocre individual performance, low company/group performance, bad market, or because a computer trading algorithm has made their job obsolete, and they have nowhere to go but back to school by the time they hit age 26.
The best traders exit to a hedge fund, where there is also no need for a CFA
Toblen55, I'm under the impression you are most certainly a troll. Not only do you have your high school football number in your username, but quickly browsing your recent comments you seem to view yourself as the next Bruce Wasserstein.
I understand Margin Call and Wolf of Wallstreet are entertaining movies, but they don't paint a perfect picture. Going forward, please restrain from commenting on topics you have minimal knowledge of.
Sure, algos are making trading positions rare, but obsolete? Absolutely not. Unemployed by 26? You're absurd. Seniors(26-31yr olds) on my desk are making $90k base + 5% merit + bonus. They could easily transition to management positions or other departments, but I think they're content with where they are. Keep in mind this is the Midwest.
.
i've met a lot of senior BB traders in my life (60+)...never met a successful trader who also had a CFA. Most traders mentality (if they are successful) is "i'm already making money...i'm a rockstar...why would i waste my time?"....however, i've met lots of traders who lose money who got the CFA...searching for something to help. Unfortunately, the CFA won't do naything to make you a better trader. Trading is about pattern recognition and instinct. Now, i'l bet that the CFA would help in certain analyst and financial sales type jobs....which is fine if that's what you want...just be aware that the CFA won't make a dent in your trading P&L.
No.
Member for 1 day...damn your clever. Hahahaha what a fkin looooser!
You lost respect when you asked what we thought the florida shooters statistics were. Have you started applying for new positions? Wells Fargo regional bank is hiring tellers.
CFA doesn’t hurt you. If you’re planning on being a credit trader definitely worth pursuing. It’s tough to run syndicate without solid credentials, so CFA is very helpful with that. Have seen plenty of guys without it as well though. Also very useful for Structured form what I’ve seen (CFA program is geared towards structured).
I would like to add that there is a huge disconnect between "Wolf of Wall St." type traders and "The Portfolio Manager for fund XYZ wants these sort of bonds" type traders. The former is dying, if not dead, and only open to suckers. The latter is open until someone can figure out how to make bond trading more similar to equities.
I can't really comment on how easy it would be to switch to a traditional analyst/strategist role within your firm. My guess is as long as you have good reviews from your stint as a TA and show a passion/understanding of traditional investment analysis/strategy, you probably have a good shot at making the move to a credit analyst / strategist role if that is where your passion lies.
In my opinion, I think that passing level one of the CFA would certainly help you. In my view that shows that you have a basic understanding of valuation concepts and accounting which are necessary for an investment analyst role. I'm an equity analyst at a L/S fund and if I was interviewing someone with your experience as a TA, passing level one would give me some confidence that you know the basics of accounting/valuation. That said, if you decide to stay in trading, I don't think a CFA will add much value.
+1 SB
its not even fucking worth it for anyone but accountants.
How useful is CFA when applying for S&T? (Originally Posted: 06/09/2008)
I am planning to take CFA level 1 exam in December and I would like to hear your opinions about it. Does it add “extra points” when applying for sales & trading grad schemes in investment banks? If so, how much value does CFA add to a good CV? It'd be great to know before committing time and money.
Much more useful for the sales than versus trading from what I have seen. CFA causes division in large banks, some people like it / some people think it is truly unnecessary if you want to be good at spotting a good opportunity. On the buside, it's almost universally wanted right now I think (or will be very soon). However, as with all signals in the marketplace, it is a differentiator in terms of demonstrating keenness and dedication (it is a lot of work, albeit not that hard) which must help all applicants ceteris paribus. The reception towards CFA will depend on your desk; if you meet a hardcore trader, they won't give you two sh*ts about your CFA, unless they're a PI / long term type of trader. If you meet a politically astute / modern day sales person, they might like it more. The knowledge base is good, however. If you're really strong academically, I don't think you need it to get in. If less so and want an extra edge, it helps.
I just took LIII on Saturday. I have no clue what traders themselves think of the designation, but I would say that the curriculm is not really applicable to trading. The curriculum seems most beneficial for Asset Management (fund or PWM) or sell side ER. As far as quant trading, forget it. Even for equity trading, the CFA isn't that good of a fit. Some elements of the curriculum will add value. However, huge chunks of the curriculm will do nothing for you. It's just not worth the effort. Now, if you want to eventually work for a HF, then yes, it does make a lot of sense.
Wait and do an MBA instead
If you got a S&T job, would you quit CFA? (Originally Posted: 02/17/2010)
would you guys quit if you got one? i mean the CFA is made for help you get in; if your in, whats the point, and will anybody ever after? specifically sales
i did
did it feel good?
What level are you in Pateman?
I wouldn't but what do I know I want a S&T job.... :)
i was happy to not take level 2
im sticking with L2 this June... in the long term i would want to switch to buyside, and i know cfa wouldn't hurt.
having started prepping... :(
im L2, but failed band 10 last year....so im prolly gonna get it ...still dont want it..
This is a good question, and one I have asked myself many times. (Taking L2 this June)
Obviously one part of me says yes, however people have told me that it is very very easy to get pigeonholed quickly in S&T, and completing the CFA is good if you want to go to into Investment Management.
pigeonholed in s&T...? lol
thats like saying "im gonna get pigeonholed into only banging hot Swedish chicks" or "pigeonholed in "medicine"...
lololol
That didn't work out so well for Tiger Woods... or is Tiger like the guy with the CFA? You can ignore my musings.
I have put it on hold. There sure is some value there, but I would say more the value is there at a Sr level. So there is no rush to do right away into your career. My friends in banking/buyside fundumental work are doing level 2 this year though.
Cfa for traders (Originally Posted: 07/24/2016)
Hello, I am a trader at a bank with a few years of experience and I am now wondering whether i should take the CFA. My doubts are : - would it help me to break into AM if one day i decide to make the move - would i learn something or is it just to have the title - is it a waste of time in my case I was thinking of a MSC in Finance but after doing some research, usually the job requirement for portfolio manager is undergraduate degrees + CFA for most of the jobs excluding quant ones and very few ask for msc or CFA.
Depends what type of trader. If you're a prop trader it's unlikely to help, but for a PM in AM it would be helpful.
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