Imran Dean, MSc Finance 2013 talks about applying his learning in the business world.
Whilst studying at the Business School I would never have thought that I would end up working in the fixed income markets. I found it a rather difficult area to understand with topics such as duration, convexity and interest rates something that took me some time to intuitively grasp. However, when I started my job as a fixed income analyst I was thrown into the deep end on day one with questions being asked during morning meetings about our view on whether the Federal Reserve would raise interest rates or where we thought US treasuries would be going year end.
Having studied the drivers of interest rates and fixed income concepts I could apply my theoretical framework to the markets. The problem was that theory did not always add up to practise in the markets or more clearly the market did not behave the way that the textbooks would suggest. This is where you could argue that the markets behave inefficiently and you can take advantage of this inefficiency by applying a solid framework of thinking.
At the Business School I learnt a lot about financial theory and quantitative methods, but more importantly how to think critically. Critical thinking helps you take that rigorous framework that you learn at university and assess what factors you think are important.
A solid foundation is key as gaps in knowledge can create misinformed decisions, so it’s important that you have a strong understanding of the financial concepts driving your decision making in the financial markets.
As I build more years of experience I have come to realise that you are constantly building the blocks that you create at university. The learning never stops, and being able to critically examine the markets vs financial theory makes me a better analyst.