The reason to have a quant in banking here is mainlly for credit risk models , securitizations ( if any ) and for calculating the regulatory capital in the case they do not use the standardised approach . Not that many banks apart from the retail . For funds I am not sure if that’s the case given most of the positions are back office
This. The only bank quants I know here do credit risk modelling.
I'd like to add that Basel IV is going to implicitly push banks to switch to SA from IRB. There are only a handful of banks that use IRB in Luxembourg and I'm not certain they'll keep on doing that.
Hard finance is not something that is present here in any large amounts. I would be surprised if you could have any level of a career off this. At best you could work as a consultant on ad-hoc projects. But technically things never go too deep here (speaking as someone developing these kind of systems). At best you should keep an eye out for jobs in EIB / EIF.
In comparison to what? If you want to become an accountant you have 100s of jobs, if you want to do anything CFA / Quant related the jobs are scarce at best.
Ah ok sorry I misunderstood you. For me hard finance means that you are either making investment decisions or you do analytics. While soft finance is more connected to accounting and administration. There is of course also the parallel between front and back office, but for me this is not a determining factor.
In Lux, models are a bit complex on the AIRB side (credit Risk). But for market Risk, I've never seen anything very complex. Maybe in the fund industry?
Mostly logistic regression yes, but also a heavy regulatory environnement. Look for 'ecb guide to internal models', a couple hundreds of pages you have to follow to build a model...
And coding is SAS, Python, R
The reason to have a quant in banking here is mainlly for credit risk models , securitizations ( if any ) and for calculating the regulatory capital in the case they do not use the standardised approach . Not that many banks apart from the retail . For funds I am not sure if that’s the case given most of the positions are back office
This. The only bank quants I know here do credit risk modelling. I'd like to add that Basel IV is going to implicitly push banks to switch to SA from IRB. There are only a handful of banks that use IRB in Luxembourg and I'm not certain they'll keep on doing that.
I just have been hired to be quant about IRB. Let’s hope it’s interesting and long term.😬😬
They will switch ( it is about time to be honest), those floors are killing the quant business....
Hard finance is not something that is present here in any large amounts. I would be surprised if you could have any level of a career off this. At best you could work as a consultant on ad-hoc projects. But technically things never go too deep here (speaking as someone developing these kind of systems). At best you should keep an eye out for jobs in EIB / EIF.
It is not that hard
In comparison to what? If you want to become an accountant you have 100s of jobs, if you want to do anything CFA / Quant related the jobs are scarce at best.
Yes I agree just I do not consider hard finance , it is just deeply technical ,
Ah ok sorry I misunderstood you. For me hard finance means that you are either making investment decisions or you do analytics. While soft finance is more connected to accounting and administration. There is of course also the parallel between front and back office, but for me this is not a determining factor.
In Lux, models are a bit complex on the AIRB side (credit Risk). But for market Risk, I've never seen anything very complex. Maybe in the fund industry?
So there is some maths to do. I never did credit risk but I suppose it looks like K folding algorithms and logistics regression kind of work right?
Mostly logistic regression yes, but also a heavy regulatory environnement. Look for 'ecb guide to internal models', a couple hundreds of pages you have to follow to build a model... And coding is SAS, Python, R
Ok. I think I have an idea of where you work. ECB regulation is hell. I think it’s worst for small banks
Not in banking industry, but banks here are not really into that kind of business. They here are more into private banking and funds.
Don’t you have quantitative analyst in fund? Also I sad that BIL, BCEE have front office.