July 23rd, 2002, 12:50 am
QuoteOriginally posted by: EnergyQuant The problem - Energy (power, gas) is an emerging market in most of Europe. The skills I'm picking up are great for energy markets, but I'm out of the mainstream financial loop. I am a trader that went the other way, was trading eurodolar caps and floors and t-bond options and swaptions when they were "exotic" produts in 1989, and went to oil. Then I switched to electricity in 1996. I am convinced i would have made more money had i stuck with i-rates [at least up until 4 years ago]; then the switch to energy paid off and my income exploded. NOW i'm probably ahead of where i'd have been, but at a much worse distribution [i'd have prefered my high income years been in the early rather than late 90's ]. Interest rates and equities WILL ALWAYS be bigger markets than energy. In some sense, the problems are simpler in i-rate/equity markets than in energy markets [which is why higher math works better in i-rates than in energy, correlation structure of the forwards is more stable]. Bigger markets means more marketing, means more new products, means more work for quants . . .. . . .but private message your e-mail addr to me for a franker discussion