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career and $ in Mortgage Derivatives Analytics
we want to go to places where we can have an impact on the firms' P&L. Does mortgage derivatives analytics have a great impact on P&L? If you have the choice of going a research/sales position, would you go for analytics? any input on analytics and research role in a major investment bank will be helpful.
career and $ in Mortgage Derivatives Analytics
we want to go to places where we can have an impact on the firms' P&L. Does mortgage derivatives analytics have a great impact on P&L? If you have the choice of going a research/sales position, would you go for analytics? any input on analytics and research role in a major investment bank will be helpful. >>
I think to "have an impact on the firms' P&L" is a bit abstract for a goal, and the plural firms confuses me. How about, you want to "make money?"
Mortgage derivative analytics covers a lot of ground. Some work is primarily statistics, predicting future prepayment and default rates of pools as a function of economic parameters. Some work is primarily analytic, computing option adjusted spreads and optimal hedges using interest rate derivatives. A lot of the most interesting work is on the intersection. Also there is a distinction between research by investors (primarily hedge funds), concerned with actual returns and cash flows, and research by investment banks, concerned with how to sell the pieces of deals.
In research/sales you will pick up general skills that will always be in demand. If mortgage jobs dry up, you can move to bonds or FX or vacuum clearners. Analytics are more tied to mortgages. My feeling is the days of mortgages as entirely separate securities are ending, and mortgage specialists may be left out in the cold. Certainly there has been a lot of contraction in the field already.
I think to "have an impact on the firms' P&L" is a bit abstract for a goal, and the plural firms confuses me. How about, you want to "make money?"
Mortgage derivative analytics covers a lot of ground. Some work is primarily statistics, predicting future prepayment and default rates of pools as a function of economic parameters. Some work is primarily analytic, computing option adjusted spreads and optimal hedges using interest rate derivatives. A lot of the most interesting work is on the intersection. Also there is a distinction between research by investors (primarily hedge funds), concerned with actual returns and cash flows, and research by investment banks, concerned with how to sell the pieces of deals.
In research/sales you will pick up general skills that will always be in demand. If mortgage jobs dry up, you can move to bonds or FX or vacuum clearners. Analytics are more tied to mortgages. My feeling is the days of mortgages as entirely separate securities are ending, and mortgage specialists may be left out in the cold. Certainly there has been a lot of contraction in the field already.
career and $ in Mortgage Derivatives Analytics
If you can learn the structuring/marketing side, this could be good, because it is a basic skill that translates to many, many other re-structuring/arbing of asset classes.
career and $ in Mortgage Derivatives Analytics
Aaron,
like your comment on "you can move to bonds or FX or VACUUM CLEANING"...People from IB end up doing all sort of stuff post-IB. Quite a few people I know end up in wine, horse, art gallery, restaurants, and textile business after a short and illustrious careers in IB....
like your comment on "you can move to bonds or FX or VACUUM CLEANING"...People from IB end up doing all sort of stuff post-IB. Quite a few people I know end up in wine, horse, art gallery, restaurants, and textile business after a short and illustrious careers in IB....