CFA for commodities industry?
Anyone in commodities origination/structuring think obtaining a CFA would add a material advantage in attempting to transition from BO settlements? Or MS/
MBA. Thank you in advance for your input.
Based on the most helpful WSO content, the CFA designation is generally not considered highly relevant in the physical commodities trading world. For roles in commodities origination or structuring, the CFA might provide a basic framework for investment decision-making, but it is unlikely to significantly enhance your chances of transitioning from back-office (BO) settlements. Recruiters in this space tend to prioritize relevant job experience over certifications like the CFA.
If your goal is to transition into front-office roles, networking and gaining relevant experience are often more impactful. Additionally, for commodities, understanding specific industry knowledge (e.g., chartering terms, L/C payments, and derivatives related to your commodity) is far more valuable than the CFA curriculum.
An MS/MBA could be a better option if you're looking to broaden your skill set and network, especially if you target programs with strong ties to the commodities or energy sectors. However, the choice between CFA, MS, or MBA depends on your long-term career goals and the specific skills you want to develop.
Sources: What Distinction is Better - CFA®, MBA, or CAIA?, The power of CFA.. What can I do?, A Guide for Switching From Commercial Banking to Investment Banking
Bump for reach
It would not help you at all, it might help you get past some HR screening BS, but you will not be a materially better candidate.
What would actually benefit you of the above is an MBA (still not necessary).
The reason I would lean MBA of the three mentioned above is while you’re in origination you may be able to drum up niche structures that work for various types of companies. Maybe one counterparty prefers a prepay structure or some kind of volumetric transfer to build up a payable to help get future business across etc…. So understanding cash flows, types of business, how they operate etc will benefit you.
I’m a trader and not an originator, so take all of that for what you will.
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