Finance or Econometrics Major (1 Viewer)

[huangker]

Hey guys

I'm just trying to get some ideas on what commerce major I should choose. I'm doing a Comm/Law degree so I can only choose one. I’m looking to getting into banking. Because my elective subjects have been taken up by law, I haven't had a chance to try any finance courses.

I'm looking for something that will provide solid technical course work. I was wondering if finance can be wishy washy? If it is, would econometrics be a better choice? And what about suitability for the banking career?

 

[huangker]

I was looking through the UNSW handbook and I noticed that there wasn't a Comm/Law listing under economectics. Does that mean that I don't have enough commerce electives for an economectrics major?

 

[blackfriday]

do econ/law for an ecmt major. for com/law, its called a business statistics major.

 

[redruM]

If you want to get into IB, I'd also recommend Econometrics. Just so that you have experience with modelling/stats. Finance would mostly be washy, like you said. Apart from one or two final year subjects. (It is the case at Macquarie)

 

[huangker]

If you want to get into IB, I'd also recommend Econometrics. Just so that you have experience with modelling/stats. Finance would mostly be washy, like you said. Apart from one or two final year subjects. (It is the case at Macquarie)

From your experience at Macquarie, how much maths and technical work is there in the finance subjects?

Also, has anyone talked to recruiters at banks about this topic? i.e. how much they value the technical skills over the wishy washy stuff and vice versa?

 

[redruM]

I'm a straight accounting major, so missed the 'proper' finance subjects. Can't really comment on the mathsy nature of it.

 

[velox]

From your experience at Macquarie, how much maths and technical work is there in the finance subjects?

Also, has anyone talked to recruiters at banks about this topic? i.e. how much they value the technical skills over the wishy washy stuff and vice versa?

I've talked to a few traders, and they compromised of finance/engineering/economics graduates. It depends on where you want to work? Sales/research/trading etc. And also what you want to trade. Exotics are obviously more maths intensive than other products. Elementary stuff to start with and to see if you enjoy it, would be black scholes for options pricing etc.

Think about it, it's a lot harder to teach a non quantitatively schooled person some quantitative skills. Much easier to teach some maths nerd some basic finance principles.

 

[huangker]

Think about it, it's a lot harder to teach a non quantitatively schooled person some quantitative skills. Much easier to teach some maths nerd some basic finance principles.

Well that is exactly what I was thinking, learning the math at uni and picking up the abstract stuff as I go along.

Im looking to get into M&A and corporate finance in general.

 

[velox]

For M&A it's useless (well most of it anyway). CA + some exp will get you Corp Finance at a Big4. Then when you have some big deals under your belt, move into PE/IB or wherever. Unless you're lucky enough to get in somehow.

Btw, you do realise M&A is more on the heavy side of hours, 110+ hours at IB. (I'm not sure if you want IB or not, but just passing on some knowledge).

IMHO I think finance is better for M&A as there is more theory. Sales/trading is more quantitative so econometrics would be ok for those, but M&A is different (as im sure you would know).

 

[ND]

Hey guys

I'm just trying to get some ideas on what commerce major I should choose. I'm doing a Comm/Law degree so I can only choose one. I’m looking to getting into banking. Because my elective subjects have been taken up by law, I haven't had a chance to try any finance courses.

I'm looking for something that will provide solid technical course work. I was wondering if finance can be wishy washy? If it is, would econometrics be a better choice? And what about suitability for the banking career?

Most standard finance courses are a joke - very "wishy washy", but then again so is IB. You don't need any quantitative skills for M&A (as velox said).

Elementary stuff to start with and to see if you enjoy it, would be black scholes for options pricing etc.

There's no way he's going to be able to understand Black Scholes.

 

[velox]

Maybe I shouldn't have put elementary in there. Uhm read up on partial derivatives first!

 

[huangker]

Maybe I shouldn't have put elementary in there. Uhm read up on partial derivatives first!

I haven’t done any finance courses at all.

I understand with trading you are always looking at models etc so econometric will come in handy.

My reasoning is: I get the impression M&A, is more weighted to the intangible stuff (communication, teamwork, sales skills etc). Since you can't learn that in the classroom, why not get buffed with the technical skills.

Yea I've heard about the hours, I'll live! lol!

For M&A it's useless (well most of it anyway). CA + some exp will get you Corp Finance at a Big4. Then when you have some big deals under your belt, move into PE/IB or wherever. Unless you're lucky enough to get in somehow.

I managed to score a CA achiever position with a big 4 in audit. Is there any chance I could get a part time job in their corporate finance division? I get the impression that the division is pretty small and I’m just finishing the first year of a 5 year degree.

 

[§eraphim]

Econometrics is watered-down stats so it's as bad as finance. Do actuarial studies/maths/engineering/physics etc if you want to be on the quant side.

However, since you're not aiming for quanty positions, it would be better to do a non-quanty major like Accounting and pick up another corporate fin elective on top of the existing finance course required for CA/CPA. There is a lot of competition from quanty and non-quanty ppl for M&A so better to have a fallback position.

Finance is weak on the theory, but it gives you a headstart on products, markets, conventions, etc, so you will be able to talk the lingo.

I doubt there would be much opportunity to transfer across divisions since they require different type of ppl and have different standards. Also, the corp fin division at Big 4 are pretty small.

 

[huangker]

There is a lot of competition from quanty and non-quanty ppl for M&A so better to have a fallback position.

Well the problem with doing a combined degree is that you only get one major. Fallback position? Are you saying that doing the finance/econometrics major is like a rifle shot? One shot and if you miss, you are in trouble?

Are banks looking to hire people with accounting backgrounds and CPA/CA qualifications?

 

[huangker]

Law is more branding than substance.

Also, accounting and law is ticket straight into tax, and thats the last place I want to be.

 

[§eraphim]

My point is that the relevant finance bits and pieces relevant for Corp Fin interviews can be picked up from a couple of Corporate Finance subjects (FINS1613 and FINS3625). Also, the maths you learn in Econometrics and Finance probably won't be of much use in M&A. Hence, it would be better to choose another major.

I don't think recruiters don't really mind what your commerce major is exactly as long it is in some way can be business-oriented. You will come under "comm/law student".

 

[turtleface]

Maybe I'm strange but I think a Finance major is historically one of the worst avenues to get into M&A. There are so many finance grads yet I can't think of any who's successfully gotten M&A on the back of that alone. Usually successful grads would have a second attachment like Law or a quantitative field like Engineering/Science.

The best for M&A from what I've see seems to be with a combined Law degree by far, and then a CA (for some reason not CPA, even though its more "finance-ish")

 

[Frigid]

You have a law degree...that.is.ur.fall.back.

if you have that mindset, and your law marks are only mediocre, you're gonna have difficulty finding a top-tier job in law.

 

[jonathan__]

I'm kinda in the same boat as huangker 1st yr comm/law n i wanna get into banking...

it would take extra effort to get a CA with a finance major so wouldn't it be better to get a CFA as it doesn't require the completion of certain courses? Apparently it isn't recognised in Aus as much as in the US, UK etc...or would CA still be a better option?

 

[lizbon]

as §eraphim said, it doesn't matter what major you do, IB's (esp in IBD) recruit from a wide variety of disciplines. However, the trend is that they tend to recruit grads who's done a double degree or an honours yr. So if you want a guranteed position in an IB in M&A, a comm/law deg with honours in finance should get u in.

i dont think finance courses are a joke if you pick the right ones, i know at UNSW, about 2/3 of the electives are useless but there are about 4 or 5 that's quite good.

metrics is a good complement for other electives, e.g actuarial, finance but i don't think i would single major in it.