Skilset for Exotics-Structured Products vs FX or other liquid products

EuroQuant's picture
Rank: Baboon | 163

Hi guys,

I was hoping someone in the industry could explain to me what kind of maths/stats/CS skillset is required in trading/structuring/quant roles in exotics/hybrids/structured credit, etc vs for instance a role in FX or other highly liquid desks.

I ask this because I have a bsc in engineering and have to choose between an msc in stats+ML vs an MSc in applied maths (stochastic calculus, probability, optimization, derivs pricing) and I am not sure which skills would be more relevant for what.

From my understanding, on exotics desks, the applied maths background would be more relevant while the stats+machine learning would be more useful on those desks that deal with more liquid products since banks have automated/are trying to automate these roles (e.g I saw many LinkedIn profiles of Machine Learning PhDs getting eFX strat roles in banks).

Also, I would really appreciate if someone could shed some light on the current state/the future of these two lines of business (like I know exotics were the thing before 2008, they took a hit, not sure if/how much they have recovered).

Huge thanks in advance to anybody who can give me his 2 cents

Comments (5)

Jun 17, 2019
EuroQuant:

Hi guys,

I was hoping someone in the industry could explain to me what kind of maths/stats/CS skillset is required in trading/structuring/quant roles in exotics/hybrids/structured credit, etc vs for instance a role in FX or other highly liquid desks.

I ask this because I have a bsc in engineering and have to choose between an msc in stats+ML vs an MSc in applied maths (stochastic calculus, probability, optimization, derivs pricing) and I am not sure which skills would be more relevant for what.

From my understanding, on exotics desks, the applied maths background would be more relevant while the stats+machine learning would be more useful on those desks that deal with more liquid products since banks have automated/are trying to automate these roles (e.g I saw many LinkedIn profiles of Machine Learning PhDs getting eFX strat roles in banks).

Also, I would really appreciate if someone could shed some light on the current state/the future of these two lines of business (like I know exotics were the thing before 2008, they took a hit, not sure if/how much they have recovered).

Huge thanks in advance to anybody who can give me his 2 cents

interested as well!

Jun 17, 2019

the MSc in applied maths would make more sense

just google it...you're welcome

    • 1
Jun 18, 2019

You are talking about the exotics/structured products or it holds true even for fx and similars?

Jun 24, 2019

bump

Jun 29, 2019
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