Blog Posts

Creating a curriculum for someone to learn from scratch and become proficient enough to write institutional-level financial algorithms as a quant or programmer will take time. But it’s fully possible for those who commit, like any career. Below is a structured four-year curriculum (plus Masters and PhD level curriculums) that could equip someone with the […]

Portfolio optimization is a key component of quantitative finance, involving the selection of the best portfolio (asset allocation/distribution), out of a set of all possible portfolios, that offers the highest expected return for a given level of risk. It’s heavily used in trading, investment management, and financial analytics. Portfolio optimization is a well-explored domain across […]

Selecting the right program in quantitative finance involves considering factors such as faculty expertise, research opportunities, industry connections, and geographic location. Prospective students should look for programs that align with their career goals and offer strong placement records in relevant finance positions. It’s advisable to review course offerings, talk to alumni, and consider the mathematical […]

Exter’s Pyramid, developed by John Exter, a central banker and economist, is a model that represents the liquidity of different asset classes. It serves as a visual framework for the hierarchy of assets, typically during times of financial stress. The pyramid ranks assets from the most to the least liquid, reflecting their safety and risk […]

Mathematical modeling of options is used heavily in finance. Both American and European options are types of financial derivatives, but they differ in their exercise rights, which leads to differences in their mathematical modeling. Let’s look into these differences:   Key Takeaways – American Options vs. European Options (Mathematical Modeling) American options can be exercised […]

The Feynman-Kac formula is a result in the theory of stochastic processes and partial differential equations (PDEs). It provides a link between parabolic partial differential equations and stochastic differential equations (SDEs). Essentially, the Feynman-Kac formula expresses the solution to certain PDEs in terms of expectations of functionals of stochastic processes. While originally for math and […]

In quantitative finance, professionals often categorize models and methodologies into two main buckets: Q World and P World. These classifications represent two distinct approaches to quant modeling. They each have their own unique set of assumptions, objectives, and applications.   Q World vs. P World (Quant Modeling) The “Q World,” or “Risk-Neutral World,” uses adjusted […]

If you’re interested in quantitative finance and trading, there are several leading academic journals that publish research in this area. Here are some of the most notable ones: Journal of Finance While this is a broad finance journal, it often includes articles related to quantitative finance and trading. Journal of Financial Economics This is another […]

Venture capital target schools often have a strong emphasis on entrepreneurship, technological innovation, and a connection to startup ecosystems. Unlike other finance target schools that may prioritize traditional finance or investment banking pathways, VC target schools typically foster environments conducive to startup culture. This might include resources such as incubators, entrepreneurship centers, and strong tech-focused […]

A private equity target school refers to an academic institution that private equity firms prioritize during their recruitment process. Such schools have a reputation for producing graduates who possess the analytical, financial, and leadership skills important for success in the private equity sector. In previous articles, we’ve looked at target schools for investment banking and […]