What do you hate about finance?

November 1, 2006 12:57 PM

What are the peeves/dislikes/hates/sources of job dissatisfaction for people in finance related careers? Specifically, careers related to financial risk management, hedge funds, financial engineering/quantitative analysis, etc.

I'm thinking about doing an MFin or an MA in Financial Risk Management and want to know the worst I could possibly expect (I guess I'm trying to manage my risk, heh) if I did that and started a career in the industry. Notes on me: I'm some math-oriented or have been in the past, but not at the level of hardcore quants; I've been working on and off in software for years but don't really like doing development -- I much prefer analysis. I have a hobbyist's interest in investing but am not particularly systematic in my own investing, since I'm well aware of the flaws of systems in the face of a mostly random market.

posted by Big Fat Tycoon to Work & Money (11 answers total)

Do you want to manage money? You could start your job and get stuck with all the adminstrative office crap, and burn out before you get your shot with actual money.
posted by ThePinkSuperhero at 1:10 PM on November 1, 2006 [1 favorite]

Response by poster: No, I don't want to manage money -- I'm aiming for some kind of research analyst position as a starting point. Unless you mean manage money at a fund level, then possibly, but I doubt they'd start off a fund manager in administration.
posted by Big Fat Tycoon at 1:16 PM on November 1, 2006

Do you need the degree first, or could you get a job in the industry (albeit at a lower level than you'd get with the master's) to see what it's like day to day before you commit to grad school?
posted by Sweetie Darling at 2:02 PM on November 1, 2006

Response by poster: I don't have a business or accounting background, so it's POSSIBLE but as far as I can tell, not as assured as if I were to invest some time and money into a degree like this. The normal track would be to do an MBA, in any case, but I'm not that interested in the less finance related aspects of that degree.
posted by Big Fat Tycoon at 3:01 PM on November 1, 2006

If you want to get into this area look into the Chartered Financial Analyst designation. It's becoming increasingly recognized around the world, and since I see you're from Canada I can tell you that it has gained a solid reputation there (at least if you're in Toronto). People I know that work in financial analysis or risk management are all either in the process of writing this or have completed it.

I'm not a big fan of the business master's idea. I think you can accomplish the same thing with some good networking, hard work, and the CFA. And it's a hell of a lot cheaper. I passed all three tests in a row while working full time, and if you get some job, any job, at a bank they will likely pay for it.

As far as dislikes about the profession, I will tell you why I went in a very different direction. Much of the work involved in pure analysis (as opposed to management or sales) involves staring at numbers on a computer screen for large stretches of time. I also find the corporate banking environment stifling. And I don't find the markets terribly interesting. But that's just me. As with any career, there are people that like it a lot.

And although you may get some knowledgeable advice here, I strongly suggest you call some people up that are doing these jobs and ask them a few questions before making any decisions with your future education.

Hope that helps.
posted by Idiot Mittens at 3:38 PM on November 1, 2006

Response by poster: Thanks for the answer, Idiot Mittens, but I'm not really interested but the CFA doesn't seem to describe my main area of interest, which tends to the more esoteric risk management and financial engineering involved in say, alternative investment vehicles like hedge funds, but that aren't limited to those realms. From what I understand, the CFA is not particularly about the practical application of new research or techniques in this realm, and looks more like something to pair with the CA or CGA designations.
posted by Big Fat Tycoon at 4:08 PM on November 1, 2006

Long hours and high stress. Don't go into finance if you aren't prepared to deal with that.
posted by ch1x0r at 4:37 PM on November 1, 2006

The hours suck. FWIW, I got a job in quanty/developerish stuff with a B.A. It was in Math/Physics, though I suspect I'm getting paid significantly less than I would with a degree that had the word "finance" in it.
posted by Astragalus at 4:41 PM on November 1, 2006

If you start to work for a hedge fund, you'll soon see that the market is nowhere near random.

Hours and stress definitly. You start at 7:00, no question. You finish whenever. Sometimes 6:00, sometimes 12:00. You stay as long as your boss stays. If you're a research associate, you have one boss, your analyst, and you'd better be best friends or your life will be miserable. You will be judged on one thing, how much you help your analyst make money for the firm/fund. You will work almost exclusively with men, and have to put up with what goes along with that. Lots of ego and lots of drinking. Lots of drinking. If you're into serious math and risk analysis, you want to work in derivitives, probably at a bank.

If you have specific questions about the industry, toss me an email...
posted by loquax at 5:25 PM on November 1, 2006

Response by poster: Astralagus, how did you get your job? I see you were/are at NYU, which maybe helped in terms of location? I'm in Vancouver, i.e. not a financial centre.
posted by Big Fat Tycoon at 6:54 PM on November 1, 2006

Because it feels really meaningless, unless you subscribe to a philosophy that makes it sound otherwise. Also, it's a harsh, unfriendly and very competitive environment.
posted by onepapertiger at 8:11 PM on November 1, 2006