financial engineering jobs

Financial engineering is a field rooted in finance but that applies the basic principles of:

  • engineering
  • programming
  • math

A student who pursues a Master’s degree in this area will find a number of job opportunities across the business industry and will be qualified to hold high-level positions in  large corporations.

Related Resource: 25 Great Master of Financial Engineering Programs

Here are five career options for an individual with a Master of Science in Financial Engineering.

1. Corporate Finance Adviser

A corporate finance adviser is involved with mergers and acquisitions of other companies. In many instances, this person works for a large investment bank or corporate advising firm. This job can be demanding and often requires long hours, especially when completing negotiations for deals. An adviser examines a business’s balance sheet and identifies promising investments. Also, this professional analyzes the financials of target companies so that equitable offers can be determined. With experience, an adviser will be able to uncover ways to finance the deals as well. Along the way, it may be necessary to anticipate the reactions of the market and work alongside lawyers to complete the transactions.

2. Portfolio Manager

A portfolio manager works with clients to uncover the best investments so that they receive the highest returns possible. This person designs customized investment options based on a person’s:

  • income
  • age
  • risk management abilities

It is essential to keep on top of the latest occurrences in the financial market and have solid communication skills. He or she must always be accessible to answer questions and address concerns as well.

Certain commercial banks have investment portfolio managers who help decide how to invest securities and bonds. These individuals must make sure the amount of money paid in interest to depositors is proportionate to the interest earned from loans. Since stocks and similar funds are volatile, it is essential to remain flexible with a company’s plans and work diligently to meet all goals.

3. Credit Risk Manager

A person with a Master of Science in Financial Engineering may hold a high position as a credit risk manager for a lending institution. When working for a bank, this person must assist and advise management about:

  • performance
  • trends
  • quality of its loan portfolios

Also, this person may monitor troubled debt restructurings and impaired loans.

To be successful in this career, a graduate must be good at strategic thinking and use creativity to develop plans for change. Although certification is not required for this job, it may help increase personal credibility.

4. Financial Regulator

As a financial regulator, you may work for the government and oversee financial markets. There are a number of agencies that act independently to achieve similar objectives. For example, you may gain employment with the Commodity Futures Trading Commission. Here, you will protect individuals from market manipulation and investigate abusive or fraudulent trading practices. On a higher level, you may work for the Federal Reserve. This body strongly influences interest rates and credit markets.

5. Derivatives Analyst

A derivatives analyst’s job can be complicated. Here, you must gather and analyze market data, including the estimated value of a stock market at a particular time so that clients make accurate and informed investment decisions. Having a master’s degree in financial engineering ensures a job candidate has skills in various areas, especially mathematics or actuarial science.

When a person holds a Master of Science in Financial Engineering, it opens the door to employers looking for expert graduates who understand how markets work and possess mathematical knowledge of their patterns. With practical skills, a candidate will be able to build a rewarding career in a multitude of areas, including:

  • investment banking
  • securities trading
  • risk management

The above positions are a sample of specific job opportunities available.

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