Teach history to avoid mistakes of yesterday’s quants

Quant grads should be taught the follies of LTCM, the Gaussian copula and the London Whale, writes UBS’s Gordon Lee

Stairs
“Those who cannot remember the past are condemned to repeat it”

This article accompanies Risk.net’s updated guide to the world’s leading quantitative finance master’s programmes. The full guide and a ranking of the top 15 courses can be found here.

I recently found myself in a room full of very young – and very bright – master’s in finance students at a top-tier university. I decided to conduct a quick straw poll. I asked whether the assembled grads had heard of the 2012 London Whale incident, in which JP Morgan lost $6.2 billion on a credit derivatives

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here