Saturation point

Tons of graduates are flocking into IB. An article claims that there are now about 150 applicants per job position in the industry. And more people are being lured into quant jobs as well. More and more academics are trying to make the switch, perhaps by the paycheck or lack of success in publishing research papers. The main point is, when will the industry hit saturation point? Will it be the case like the IT bubble?

Being a quant sounds sexy, doing high-level sophisticated modelling and applying advanced math skills. But it is common knowledge that a quant spends around 60-70% of his time writing codes, doing implementation work, etc. Some people say that it is not that sexy, and most models are much simpler than what is perceived.

There are so many quant finance programmes now, and the best brains go to top US schools. Look at Berkeley's student profile, and you see a lot of PhDs going back to school for a MFE, almost guaranteeing them a job in Wall Street. At the same time, London is looking more attractive and many US grads are applying to London. Competition is just too intense.

It is debatable whether to start work now and gain some experience, or to get a PhD and finish it in 3 years. Some argue that the experience will be more beneficial, while other claim having a PhD moves you up the food chain faster.

Sometimes I wonder when this quant obsession of mine will end, since if I were to move back home, I'd be unemployed. The local financial scene thrives on retail banking, and a growing niche in Islamic banking. Maybe I should be looking at Islamic finance, and could perhaps put myself in a better position.