Hi everyone,I have been working for 1.5 years in the Credit Counterparty Backtesting Team in a top tier 1 bank (CH). At the beginning the job was really interesting (implementing RFE models in R for example), but now it's becoming similar to a plumber's job. We take models already developed, we need to fix the implementation to use them fro backtesting. The amount of analysis and understanding of the models needed is really close to zero needed and my quant skills (master in Applied Math and master in Quant Finance) are becoming almost useless. I am looking for a new job outside, but in this period the market is a bit dry in the direction I would like to follow, which would be either Asset Management or Portfolio management, but anyway something which is more connected to the markets.I have the possibility of a internal move for a Model Validation role but I am struggling because I have the feeling that probably it would be only an interim solution.What do you suggest? Keep my current position while looking for a new role or in the meanwhile accept the model validation offer and look for a new position in 5-6 months time?Cheers,L.

You should be grateful for having done interesting projects at all.

What do you mean? The projects I have been involved have been maybe interesting for the first 4-6 months, but everything that I have done could have been done just opening a book and reading it. There has been no added value of being in this position, and the things are getting worse.

I would be inclined to take the model validation job, even if you think it is a temporary move (most are). It will broaden your experience base and network within the bank, give you another line or two on your resume, and might just possibly let you tinker with an interesting model or two (stranger things have happened). I don't really see much downside based on your brief description.

So, you think that this is going to have more a positive impact than a negative on my cv? I would like eventually to stay in areas where more sophisticated methods are used (i.e. Portfolio Management or Derivatives Pricing to make an example), and I am only scared that Model Validation (for Capital models) is going to be seen as a step back. Also two things are true: in my current position I am now really lacking the practical use of quantitative methods. I did a lot of implementation in R for simulation of risk factor models, but now things slowed down dramatically. But it is also something I have experience on and can potentially be leveraged for a next move.

Dude !! How many new models have you seen evolving lately ? How many new products ? Model validation looks interesting and I would take it if I were you.. If you want continous practical use of quant methods, why not join a research firm ?

QuoteOriginally posted by: antropeSo, you think that this is going to have more a positive impact than a negative on my cv? I would like eventually to stay in areas where more sophisticated methods are used (i.e. Portfolio Management or Derivatives Pricing to make an example), and I am only scared that Model Validation (for Capital models) is going to be seen as a step back. Also two things are true: in my current position I am now really lacking the practical use of quantitative methods. I did a lot of implementation in R for simulation of risk factor models, but now things slowed down dramatically. But it is also something I have experience on and can potentially be leveraged for a next move.Given that you are starting in credit counterparty backtesting (an area whose existence of which I was previously unaware), no, I don't think model validation will be seen as a step back. At worst, sideways. And, for better or worse, model validation is one of the more active areas of quant employment these days.