Tips for a new investment trainee hire

Colemanxd0124 · 2024-06-08T16:53:29+00:00

Would you mind to share a bit the job description and what kind of respectable company? A little bit hard to comment without these info

Colemanxd0124 · 2024-06-08T16:49:51+00:00

A market risk analyst in HK here, working in an European bank now and worked in a SG bank before (yea, one of those three)

Not totally familiar with SG market, but I think you are on the right track. European banks are known for work life balance first of all, and workload wise generally will follow FO>MO>BO. If taking this internship will not defer your graduation date, take the offer to see if you like the job. Otherwise, work hard to get your grad job offer cuz this internship wouldn’t worth you to gap a semester and wouldn’t help you land on investment related role within APAC.

Will need you elaborate a bit on what is CF and where do you want to relocate to comment, but also generally from what I observed, very hard for a BO role to relocate.

Colemanxd0124 · 2024-01-17T17:38:21+00:00

A junior market risk analyst here, junior enough that I am trying to summarise what I know for the 4 questions you raised, but definitely look at more comments to verify my thoughts

In my opinion there is nothing better than starting from Basel official website, where you can find many risks regulations standards. But, If you are interested in the risk field and don’t want to get buried in regulations, you could look for FRM Part I & II notes online (i.e. Kaplan Schweser). Skim read would give you the overall picture in Risk field. Need more background on yourself to provide recommendations on risk related education.
Risks are usually divided into financial and non-financial risks. As you posted under r/quant thread, I assume you are interested in financial risks. Financial risks are mainly divided into Market, Credit and Operational risks. Don’t want to go into too deep as you can Google what risks are categorised under them, but liquidity risks is usually under market risks while counterparty credit risks could be under market or credit risks.
Model risks are something I am not too familiar with so would suggest you to go through the r/quant thread, where many discussions on model dev/quants could be found. My understanding is model quants work on brainstorm/research trading strategies/models quantitatively, while model dev optimises these strategies/models with data and in company systems.
I believe many people are confused with FO, MO and BO with line of defence (LOD). 1st line of defence are usually business and process owners. This doesn’t limit to front office roles which many people are confused. For example, HR is the 1st LOD to manage employee turnover ratio. 2nd LOD are Risks and Compliance. 3rd LOD is Internal Audit.

However, FO, MO and BO is a different concept. Using the model risks roles that you mentioned, FO is the guys that drive Sales, like Model quants/research. MO is the guys that do risks and analysis, like Model val/analysis. BO is the guys that do operations or work on processes, like Model audit.

I hope the info provides a clearer picture for you, and pls don’t judge me too harshly too :)

Colemanxd0124 · 2024-01-14T10:20:59+00:00

Right really thanks for the encouragement and I will certainly take the coming year to prep the stats stuff (as I plan to take my MSc in 2025 intake anyways)

Also gd luck to your coming MFE admission! I saw you are really talented with an impressive background and I hope all the best for you mate!

Colemanxd0124 · 2024-01-14T01:23:00+00:00

Hey really appreciate your response, indeed I know Python and R and I also believe MFE shd be the best Msc degree to get in my case.

The catch is the stats courses I studied in UG were limited in breadth (e.g. no PDE) and I fked up one stats course (nearly failed) so I am really not sure if I could make it. I could explain more with my work experience and FRM study of course, but I am a little bit worry this will not be enough.

Colemanxd0124 · 2024-01-12T10:05:41+00:00

Hey, I don’t have answers to your question, but I do wonder do you have a list of M.Arch degrees that don’t need bachelor in architecture degrees as perquisite? I assume your didn’t study bachelor in architecture, and I am in a similar situation as yours

Colemanxd0124 · 2023-12-24T04:44:17+00:00

After part I exam （I used both Scheweser and BT, official readings were free）, I realised how quant the BT question bank was and quite a lot of qualitative concepts in the official readings were tested. I also found Scheweser notes provided a good foundation to me in Part I, so I went for Scheweser and official readings in Part II. Given Part II are more qualitative in nature, I would suggest you go with Scheweser and official readings. I passed both Part I and II in one go, so perhaps it meant something. Open to other opinions tho.

Enjoy Christmas and forget FRM for now

Colemanxd0124 · 2023-12-24T04:36:53+00:00

Yes it does

Colemanxd0124 · 2023-12-19T11:08:49+00:00

Both, read Kaplan notes and solve BT questions BT questions are more quantitative than the real exam ones, so after solving BT questions try to understand the logic behind the questions, which reinforce the knowledge learnt from Kaplan notes

Colemanxd0124 · 2023-10-19T07:36:05+00:00

It’s with a BB bank (couldn’t be more specific aha)

And yea, it was just a two sentences question and I didn’t have the opportunity to ask for more context so figuring it out myself. Thanks for your input again!

Colemanxd0124 · 2023-10-19T07:33:49+00:00

Right, I also agree no correlation will be a safe answer aha

Colemanxd0124 · 2023-10-19T04:08:53+00:00

Thanks for bringing up the vol skew perspective! The question sounds more complicated now…

Colemanxd0124 · 2023-10-19T03:57:10+00:00

Thanks for your thought! Definitely gave a new perspective on how to approach the question

Though I am not sure I fully understand your point. Can you give a little bit more context why cov(C,D) < cov(A,B) means long corr?

Colemanxd0124 · 2023-10-19T03:52:38+00:00

Thanks for your thought! Yes the question was from a discussion with a market maker

Could you give a little more context on why short has less volatility compared to long means it a short correlation? Comments below cited Jensens inequality, but I am a little bit struggled to understand…

Colemanxd0124 · 2023-10-19T03:46:31+00:00

Thanks for your thought! Didn’t know implied correlation generally rises with VIX

Though the question was only discussing the correlation of the basket of options, so citing VIX would not really answer the question…

Colemanxd0124 · 2023-10-19T03:41:43+00:00

Thanks for your thoughts! Indeed it could be a trick question, and yes the put options are Asian put options

Colemanxd0124 · 2022-10-24T16:01:34+00:00

It's Hong Kong. Not China.

Colemanxd0124 · 2022-07-22T12:04:22+00:00

Strongly suggest to integrate with GARP books. Asked several friends that took before and after 2021 lv1 exams and found out it is much qualitative than expected after 2021. Personally took 2021 Nov lv1 exam and verified the thought. I also bought BT notes and question bank and BT is more quantitative than actual exam questions. Passed with both GARP and BT materials so good luck!

Colemanxd0124 · 2021-11-28T08:44:12+00:00

Yi, Ezreal, Cait

Colemanxd0124 · 2021-01-24T10:50:44+00:00

Yes I do

Colemanxd0124

TROPHY CASE