Financial Math socials- a fun break from the rigorous coursework

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In the midst of the busy life with assignments and projects, Financial Math students have the opportunity to take a break with social events scattered throughout the semesters. The socials are fun and act as stress busters in between long hours of studying. More importantly, the socials bring everyone together and allow the students to bond outside the classroom.

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Last Spring 2015 semester, our Director of Career Services and Director hosted events such as bowling, Chinese New Years potluck and a spring picnic with team games. The Financial Math program does a great job of ensuring all students enjoy their time at NC State.

We had a great time and look forward to future Financial Math socials Fall and Spring semesters. Thank you Leslie & Jeff! - Preethi Kankanala, Financial Math Intern, December 2015 Graduate

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The Financial Math program’s Executive Board welcomes 3 new members.

NC State's Financial Math program is excited to announce three new members to the Executive Board- Mike Bauer with AllianceBernstein, Sheila Baptiste with Credit Suisse and Rick Carter with National General Insurance.

Updated list of members can be found here.

The Executive Board is comprised of industry leaders and Financial Math alumni. Board members provide guidance, expertise and contacts to the program's two Directors. We sincerely thank the Board Members for their participation and commitment to the Financial Math program and its success.

Congratulations to our May 2015 Graduates!

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Congratulations to everyone who graduated this May 2015! We are proud of your hard work and wish you many years of success.

We our proud to announce that our recent graduates received offers and have started working at Bank of America, Genworth, SAS, BB&T, Credit Suisse, Deutsche Bank, Maxpoint, & Aohey, LLC.

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Re-cap IAQF’s “How I became a Quant” at NC State

On Friday evening, Nov 14th 2014, NC State’s Financial Math program and IAQF (International Association of Quantitative Finance) hosted the event “How I Became a Quant”. The panel included Financial Math alumni, Jared Bogacki with BB&T and Albert Hopping with SAS, as well as Altrius Capital Founder, Jim Russo and current student Jeff High with Captrust. They each took turns sharing their career path stories with the audience and answered questions about quantitative careers. Dr. Jeff Scroggs, Director of the Financial Math program, acted as the moderator for the event.

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To start, Jim Russo talked about his background and starting his company, Altrius Capital in 1997. He enjoys quantitative finance and visited investment firms to learn more about the field, which included networking with his best friend who got an MBA from Princeton and worked at Bernstein (Alliance Bernstein). This inspired him to open his own investment management and financial consulting business in New Bern, North Carolina. Altrius Capital also has an office in downtown Raleigh, North Carolina and is growing fast.

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Next, FM Alumnus, Albert Hopping shared his career path story. He got his Bachelors in Physics at NCSU and then worked in the energy industry as a Risk Analyst. Several years later, he enrolled in the Financial Math program at NCSU and learned more about quantitative analyzing. He found it be interesting and amazing. Thus, this led to his current role at SAS where he applies quantitative analysis to his daily work. You can read his personal interview here.

Jeff High is finishing up his Financial Math degree at NC State. He did his undergraduate studies in Finance and Financial Economics, and then got a job at Wells Fargo. In 2006, he noticed his job became more and more quantitative. During 2007 to 2009, he worked at another investment firm and managed a team in Valparaiso, Chile while supporting New York, London, and Hong Kong trading services. Due to the 2008 financial crisis, he came back to US and and started his Masters in Financial Math at NC State while working at other investment firms. He realized technology skills are very important, which he is enhancing through the Financial Math program.

Lastly, FM Alumnus, Jared Bogacki shared his career path and has worked at BB&T for more than 10 years. He is currently a manager about shared his expertise and advice to current students on getting a job in the field. Jared and Albert both emphasized the importance of communication as a top soft skill to sharpen as it is required to be successful in the industry.

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After they shared their stories, Dr. Scroggs asked them about careers and salaries in the Financial Math industry, and work and life balance. Mr. Hopping said there is a high correlation between working hard and receiving high rewards and benefits. Thus, the harder you work, the more you are rewarded. But that comes with longer hours and stress. Mr. Russo made the point that if you enjoy what you are doing, the long hours and hard work will pay off and the stress is worth it because you are doing something you value. Mr. Bogacki agreed and mentioned the importance of having passion in what you do. Being overly stressed and not enjoying your job is not ideal and students should choose a career path that closely aligns with their interests, talents and passion.

They also talked about specific courses and types of technical skills students need to gain to be successful. All panelists stressed to not only focus on academics but to enhance business and soft-skills such as communication, interpersonal and problem solving skills. Being able to clearly articulate ideas, processes and models to clients and business colleagues is very important. Mr. High gave personal examples of his own experiences to emphasize the importance of gaining and improving technical and soft skills as significant factors in succeeding with one's own career path.

The audience had an opportunity to ask several questions about interview tips, types of interview questions expected in interviews, and other tips to succeed in the Financial Math industry. Thank you Jim, Albert, Jeff and Jared! Everyone enjoyed hearing your career stories and expert advice. The evening ended with a reception held in SAS Hall.

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Meet our Financial Math Alumni- Brandon Blevins

Meet Brandon Blevins, Product Controller at Credit Suisse in New York City. Brandon graduated from the Financial Math program in 2009. We were glad to catch up with him in Manhattan and learn about his job and life in the city.

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Part I: Education & Job Background

1) How did the program prepare you for your job?

Brandon: The Financial Mathematics program gave me the background about quantitative finance. It provided me with the basics on how financial assets work, how models applied to assets, and how interest rate curves work.

2) Describe your job.

Brandon: Currently, my job is Product Controller at Credit Suisse. The main point of Product Control is to ensure that the Profit and Loss (PL) generated by portfolios reviewed gets to the general ledger of the bank, which then is reported to shareholders and board members who make financial decisions based on Credit Suisse earnings.

My day involves reviewing risks on books, making sure risks are within tolerances, and P/L are in line with the risks. For example, suppose you have net Vega on a single position of $100K. The volatility moved on the position by 100 basis points and you did not make or lose any money on that position. Did that make sense? It is the Product Controller’s job to make sure it does makes sense. If something is wrong, we flag it. We make comments on any big moves, big losses, and provide reasons why money is lost.

Part II: Analytic techniques

3) Does your company use stochastic models? If it does, what kind of models are used? Is there any reason for choosing these models?

Brandon: We use Black-Scholes formula to build up implied volatility curve. Options with the same underlyings and maturity but different strike prices have different implied volatility. The same options with different maturities may also have different implied volatility. Thus, implied volatility is a function of strike price and maturity, and we can define a volatility surface. We also use jump-diffusion models to model certain protocols. For example, is there a big court case coming up in the next few years for a specific company, or does this specific company have any big products coming out in a few years? That is where jump-diffusion comes into play.

Part III: Risk management

4) How does the crisis and the regulation policies enacted afterwards affect the behavior of your company?

Brandon: Radically. Since then, many parts of businesses have been shut down. Interest rate products have been drastically cut by 90%, because the Feds have kept rates low. There is a huge push to move everything onto exchange and standardize all products. Any flow business has been hit hard such as the credit default swap (CDS) market. Junk bond market has been on fire lately. But it did excite the mortgage back portion.

5) The goal of risk management is to achieve a balance between returns and risks. Thus, with lots of capitals and human resource spent, risk management may, to some extent, reduce a company’s profits. Now suppose you are a leader of a financial institution. Driven by the motivation of maximizing the profits, will you pay enough attention for risk management?

Brandon: Lead traders will listen to risk management and work in conjunction to set risk limits and VAR measures. If the limits get breached, everyone will look at it.

6) You used to be an interest rate derivative analyst, but now you are focusing on equity derivatives. So in your opinion, what is the difference between the interest rate derivative market and the equity derivative market?

Brandon: Interest rate market and equity derivative market start to look alike with low volatility. The bond market did very well in the past, but now it hover sideways because of the flat yield curve environment. Equity market is experiencing the same problem. Rates are not moving and are low.

Part IV: Suggestion & Advice

7) What skills set are important to succeed in your field? And what kind of courses will you recommend for current students to take.

Brandon: Networking! Make sure people like you, so they will recommend you. I landed all of my jobs because I knew people who worked for companies that I wanted to join as well. I got the interviews because people recommended me. Therefore, students should get out there, meet people, talk to them, learn from them, make relationship with them, and then they will recommend you for jobs. Just get connected! People can put you in positions to succeed, and give you opportunities to help you succeed. If they like you, they want to you succeed.

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Thank you Brandon!

Quantnet Rankings

Where is NC State on the 2013-2014 and 2014-2015 Quantnet rankings? Great question. Summer of 2013, we were busy making enhancements to the program by adding a Director of Career Services position and planning our 10 year anniversary and alumni event. With those distractions we neglected to submit our data to the Quantnet survey. Due to this mistake, we were not listed for 2013-2014 and the most recent list.

We want ensure you that the Financial Math program is going strong with 100% placement for our December 2014 graduates. NC State University is ranked 4th in the United States for best value for high academic standard and low tuition. We believe the Financial Math program is #1 best value out of all Masters of Financial Math programs.

We are proud to say we have 100% placement for internships and high-paying full-time jobs for graduates (within three months of graduation). Current students participate in leadership roles as Career Ambassadors, engage in job-shadowing and networking events, and have the opportunity to gain more knowledge through specialized professional workshops.

We were ranked 19th in 2011-2012, and we are confident you will see NC State's Financial Math program back on the Quantnet ranking list for 2015-2016!

In the meantime, you will find us in the top 25 for the Financial Engineer rankings.

Upcoming “Unconstrained Fixed Income” workshop- by Jim Russo, Altrius Capital

NC State's Financial Math program is proud to host workshops taught by alumni, professional experts and area employers to provide practical industry techniques and training for students. The series of workshops include topics of financial risk, credit risk, stress testing and fixed income. Workshops are intended to provide opportunities for students to enhance their professional and career development, as well as strengthen soft skills highly sought by employers such as presentational skills, business writing, teamwork, and conflict resolution.

Jim Russo, Founder and Chief Investment Strategist at Altrius Capital, will be leading a series of workshop on Fixed Income. Jim is also a Board Member for the Financial Math program. Below is an outline of what will be discussed:

Unconstrained Fixed Income Workshop

Learn how to invest differently than traditional fixed income management.

· Use contrarian thinking to help identify opportunities

· Employ quantitative screens to fixed income marketplace

· Address importance of Global Macro strategy

o Duration

o Credit

o Yield Curve

o Sector rotation

· Fundamental Analysis utilizing Income statement vs. Balance sheet

Thank you Jim! Students are looking forward to this workshop!

Congratulations December 2014 Financial Math Graduates-100% placement!

Congratulations to our small, but successful December 2014 graduating class! These students hard work paid off as they enter the work world in January, 2015. Reshmi Paul will be working at T.Rowe Price, Changyi He will be working at Deloitte and Liye Wang will move back to Beijing, China to work for a commercial bank. We are proud of you and wish you all the best of luck!

Left to Right- Liye Wang, Leslie Bowman (Director of Career Services), Jeff Scroggs (Director), Changyi He. Not pictured- Reshmi Paul

Left to Right- Liye Wang, Leslie Bowman (Director of Career Services), Jeff Scroggs (Director), Changyi He. Not pictured- Reshmi Paul

"I enjoyed my time at NC State's Financial Math program. The people are nice and the program gave me a lot of opportunities to network with professionals, as well as learn practical knowledge on how to apply mathematics to the finance industry."- Changyi He

"The Financial Math program is excellent in combining financial knowledge, mathematics, and programming. It provides us the tools to help us be successful with our future professional careers."- Liye Wang

IAQF’s “How I became a Quant” comes to NC State!

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We are pleased to announce this event below:

Financial Engineers Give a Personal View of their Careers in Quantitative Finance

A Series of Panel Discussions For Students Interested in a Career in Quantitative Finance

How I Became a Quant: North Carolina State University's Financial Math Program

Friday, November 14
5:00pm Registration
5:30pm Program Begins
6:30pm Reception & Networking

North Carolina State University- SAS Hall
2311 Stinson Drive- Room 2203

Panelists:

Jared Bogacki- BB&T

Jeff Rockwell High- Captrust

Albert Hopping- SAS

James Russo- Altrius Capital

Moderator- Jeff Scroggs

Registration is Complimentary!
Please Click Here to Register