Job market comparison before&after 2008 market crisis

s.gerat · Post by **s.gerat** » Sat Jun 02, 2012 4:42 am

Hello, I want to ask experienced quants about the job market condition right now. Are interviews more difficult now than prior to 2007-8 at the peak of quant industry? I'm curious if firms have set the bars higher in hiring new quants (entry-level) now?

Hansi · Post by **Hansi** » Sat Jun 02, 2012 3:52 pm

I'd assume so given that there are less jobs to go around and you can easily find someone with work experience who's willing to work for entry level salaries at least for now.

ComteZero · Post by **ComteZero** » Sun Jun 03, 2012 12:11 am

"interviews more difficult" no. except that there's nothing behind usually. only to check if biz is has bad as it is in competitor's firms.

in continental europe i'd say job market is alsmost dead. people getting fired currently have better to relocate or change industry, regardless how good they are.

i recently witnessed people with great value and reputation unable to get a job, and very untalented people able to get a job in London (in tier 3 institutions, but a job still). I don't say that London is hiring untalented people, far from that ! just say that liquidity is there.

my viewpoint but don't think it's biased.

a great quant fresh from school should apply to Google & co rather than ML & co.

doctorwes · Post by **doctorwes** » Sun Jun 03, 2012 7:50 am

You haven't been talking to hammerbacher, have you?

s.gerat · Post by **s.gerat** » Tue Jun 05, 2012 6:48 am

i just feel a little more passionate about finance than IT industry. because i don't think if i can use my quantitative skills in IT jobs as much as i can in quant finance (maybe i'm wrong about my opinion if someone can provide different stories).

it's just that the state of finance industry now needs some restructuring. the industry needs to rework on its tainted image as perceived by the main street.

do you perceive any positive changes in the industry after the dodd-frank rules start to work in july?

if yes, how long will it take?

sv507 · Post by **sv507** » Tue Jun 05, 2012 10:20 am

I would say the majority of quant jobs was in modelling exotic derivatives at investment banks. However this market is dead AFAIK for multiple reasons.

a) investors are no longer stupid enough / (allowed by their managers?) to go for some complicated n year product just because they get a large coupon in first year. This was the main driving force behind exotics growth/quant job market.

b) the cost of capital required to manage the trading book is now much higher, so banks profits lower

c) dodds /franks etc other regulation

the quants I know have not been doing any model development for about three years...its all IT infrastructure work.

The few areas I know that have some growth is CVA and inflation modelling.However, its pretty basic stuff.

But as I say the main profit driver was selling dodgy derivatives to idiots ( local councils etc). so I don't see any restructuring will change that fundamental issue.

hedge funds presumably haven't closed down so much but i don't think there was ever such a need in quant analysis/ exotic products....so fewer jobs to start with and I am guessing they tend to cherry pick experienced hires from IBs rather than training them up themselves.

so I would agree better to work for Google&co..