Using an MFE for a different line of work

[DominiConnor]

One thing I don't yet have a good measure on is the "impressiveness" of an MFE if you bail out and do something else.

By that I mean that if you do (say) a masters in history at Cambridge, employers will generally assume you are basically smarter than most grads and remember that many jobs don't directly require anything you learn after the age of 18, so the branding is the whole value of the qualification.

If you turned up at (say) General Motors would an MFE help or hinder ?
Part of me says that a deeper understanding of money helps everywhere but this is in equilibrium with the stigma that you trained to be an banker, but didn't make it so you're going elsewhere.

 

[bullion]

When I visited China in 2010, I checked their local listings for traders (I traded US equity for a NYC fund) and found that they were hiring commodity "traders" or "trainees" like crazy. But digging deeper, I found that most of the "funds" came with enterprise backings (either governmental or private). Basically, many companies with inputs like coal, precious metals, etc, figured they would just turn their risk management arms into a hedge fund and trade the company's money (or outside investors, I guess).

Most jobs don't require advance math or programming, but detailed knowledge in modern financial instruments is critical for any business large enough to be exposed (or take advantage) of market risks. Although most MFEs are interested in "hot employers" like banks, hedge funds, and asset managements, I think large corporations such as GM can definitely use MFEs to help manage input cost or pension (do they still have pension plans for their employees?).

The big question is whether big companies like GM recognize the potential benefits of MFEs.I think it also took a while for companies to recognize the benefits of MBAs in comparison to any internally-promoted senior manager. Without demand outside of the financial sector, non-financial services companies tend to offer lower salarys (and therefore attracting more of the "didn't make it" crowd.) But if you're like a mining company in China and knows exactly what you hope to achieve by hiring a MFE graduate, then you can offer a competitive salary and get some top notch candidates.

 

[APalley]

When I visited China in 2010, I checked their local listings for traders (I traded US equity for a NYC fund) and found that they were hiring commodity "traders" or "trainees" like crazy. But digging deeper, I found that most of the "funds" came with enterprise backings (either governmental or private). Basically, many companies with inputs like coal, precious metals, etc, figured they would just turn their risk management arms into a hedge fund and trade the company's money (or outside investors, I guess).

Most jobs don't require advance math or programming, but detailed knowledge in modern financial instruments is critical for any business large enough to be exposed (or take advantage) of market risks. Although most MFEs are interested in "hot employers" like banks, hedge funds, and asset managements, I think large corporations such as GM can definitely use MFEs to help manage input cost or pension (do they still have pension plans for their employees?).

The big question is whether big companies like GM recognize the potential benefits of MFEs.I think it also took a while for companies to recognize the benefits of MBAs in comparison to any internally-promoted senior manager. Without demand outside of the financial sector, non-financial services companies tend to offer lower salarys (and therefore attracting more of the "didn't make it" crowd.) But if you're like a mining company in China and knows exactly what you hope to achieve by hiring a MFE graduate, then you can offer a competitive salary and get some top notch candidates.

Many of these companies hire actuaries to perform the duties you mentioned. Actuaries are somewhat better suited to deal with 'regular companies' than are MFEs, as many actuaries have the business/economics background in addition to a (bit weaker) quantitative background

 

[bullion]

Many of these companies hire actuaries to perform the duties you mentioned. Actuaries are somewhat better suited to deal with 'regular companies' than are MFEs, as many actuaries have the business/economics background in addition to a (bit weaker) quantitative background

Well, do you think MFEs can make good actuaries? It seems fairly common for MFE students to pass a few actuary exams, and business/economics background can be obtained through the CFA curriculum (which is also common among MFE students). Actuaries seem to have pretty decent work/life balance, and having a MFE probably won't hurt one's qualification as an actuary. (At least that's my plan if I wanna do consulting after getting a MFE)

 

[APalley]

Well, do you think MFEs can make good actuaries? It seems fairly common for MFE students to pass a few actuary exams, and business/economics background can be obtained through the CFA curriculum (which is also common among MFE students). Actuaries seem to have pretty decent work/life balance, and having a MFE probably won't hurt one's qualification as an actuary. (At least that's my plan if I wanna do consulting after getting a MFE)

Some MFE's would make good actuaries (and vice versa), while many would not. Actuarial work is much less technical than Quant work, and some Quants are just not cut out for that. Hard to make a blatant generalization, but any MFE who has taken the CFA would probably have a relatively easy time becoming an actuary.

 

[purplyboy]

Are you saying passing the CFA exams are easier than passing the actuary exams?

 

[AV-Wolverine]

Thank you for raising the issue DominiConnor. I'm interested in getting into corporate analytics after getting an MFE degree. Being in a large company myself, I see that there is a new interest for people with a quantitative MFE program. The treasury and risk management departments are the main internal customers with work in risk management, hedging strategies, value-at-risk models, and commodities and foreign exchange exposure.

Most of the analytics teams right now are composed of theoretical physicists or people with strictly programming backgrounds whose skills they bring together. However, when I talked about doing an MFE program, it generated a lot of interest as MFEs are seen as having a blend of these skills and a better business understanding (especially if the degree comes from an MFE program housed in or near a b-school). The senior executives sound very positive about people with an MFE degree, citing the technical rigour and value addition they can expect from such a candidate.

Has anyone else received similar feedback if considering a corporate role after an MFE degree?

 

[APalley]

Are you saying passing the CFA exams are easier than passing the actuary exams?

I am not sure what I said that implied that. Now that you mention it, that is definitely the case. Actuarial exams are arguably the most grueling set of exams for any field.

 

[darth]

You can't make a generalization that CFA is easy... It depends on how many and which actuarial exam are you comparing CFA with. I have done both and found preliminary SOA exams to be pretty easy..

 

[Sushant]

One thing I don't yet have a good measure on is the "impressiveness" of an MFE if you bail out and do something else.

I think the thing that differentiates a Cambridge History Grad from a top MFE grad is not so much that the former is considered very smart and the latter isn't. It's more the kind of smart the latter (top MFE grad) is considered: unidirectional; while the former is considered 'generally' smart. To be attractive for jobs outside of your core competency you need to be (or atleast the perception others have of you needs to be that of) a more well-rounded kind of smart. Plus, of course, there's brand. The top MFE programs are mostly all 10-15 years old (time is a factor) and as yet lack a strong universal brand strength.

Which brings me to think that the top Statistics Grads, who get an education of a pretty similiar type as MFEs, are not thus hindered. Is there a lesson there? Just guessing.