Tuesday, December 23, 2008
Quants going forward
Amid the worst downturn in banking since ever, quants are still finding ways into the industry according to this report. The survey of quant farms, who globally produce 2000 man a year, finds that quants are in demand from hedge-funds to banks in order to price counter party risk. "Classes are placed at 60% by this time of the year" says one director of department "versus 80% in previous years." Basically those that were blamed a year ago for setting off the August 2007 panic are now asked to figure out what the hell is going on. As a side note, I am reading "physics of finance", a manifold based modeling of finance that quickly starts drawing on the tools developed by math for theoretical physics, both gravity and quantum theories. For example it models arbitrage as space curvature. Space curvature is captured in general relativity. Money is a force?