3 MOOCs to Prepare for a Quantitative Finance Career

Elite Education at Nominal Cost to Break into Quant Finance

For aspiring quantitative finance professionals, building a strong foundation in both financial theory and practical application is crucial. Whether you aim to become a quantitative researcher or a quantitative trader, understanding financial markets and mastering technical skills is essential. Here are three highly recommended MOOCs that will help you prepare for a successful career in quantitative finance.

1. Financial Engineering and Risk Management Specialization

If you are looking for a course that provides practical insights and prepares you for interview questions, the "Financial Engineering and Risk Management Specialization" by Columbia University on Coursera is an excellent choice. This specialization is designed to equip you with the necessary skills to tackle complex financial derivatives, optimize portfolios, and implement trading models. Here’s a breakdown of what you will learn:

Course Objectives:

• Valuing Financial Derivatives: Learn to value options, swaps, forwards, futures, and other complex derivatives using stochastic models.

• Data-Driven Approach: Develop a systematic approach to formulating modeled returns and risks for significant asset classes.

• Trading Models: Backtest and implement trading models in a live trading environment.

Course Content:

1. Introduction to Financial Engineering and Risk Management: Covers fixed income securities, derivatives, and pricing models, including the Black-Scholes model.

2. Term-Structure and Credit Derivatives: Focuses on interest rate modeling, credit derivatives, and securitization.

3. Optimization Methods in Asset Management: Discusses portfolio construction, Value at Risk (VaR), Conditional Value at Risk (CVaR), and transaction cost modeling.

4. Advanced Topics in Derivative Pricing: Explores Greeks, volatility surface, and structured products like Credit Default Obligations (CDOs).

5. Computational Methods in Pricing and Model Calibration: Teaches numerical techniques, model calibration, and Python programming for financial applications.

This specialization is ideal for gaining practical skills that are directly applicable to the challenges you will face in quantitative finance roles.

2. Economics of Money and Banking

For a deeper understanding of the financial system, the "Economics of Money and Banking" course by Perry Mehrling from Columbia University on Coursera offers an original and nuanced perspective. This course explores the relationship between capital markets and money markets, emphasizing that modern money cannot be understood separately from modern finance.

Key Takeaways:

• Intertwining of Markets: Understand how capital and money markets are interconnected.

• Modern Monetary Theory: Gain insights into the construction of modern monetary theory in relation to financial theory.

• Practical View: The course provides a grounded, practical approach to understanding financial markets.

This course is highly recommended for those who wish to grasp the broader economic principles that underpin financial markets.

3. Financial Markets

The "Financial Markets" course by Yale University professor Robert Shiller on Coursera offers an introduction to risk management and behavioral finance principles. This course is perfect for understanding the real-world functioning of various financial sectors, including securities, insurance, and banking industries.

Course Highlights:

• Risk Management: Learn about the principles of risk management and their application in financial markets.

• Behavioral Finance: Understand how human behavior affects financial markets and decision-making.

• Real-World Functioning: Gain insights into the operations of securities, insurance, and banking industries.

This course provides a comprehensive overview of financial markets and is suitable for those looking to deepen their understanding of financial concepts and their practical applications.

Conclusion

Whether you are aiming to build a strong theoretical foundation or acquire practical skills for a quantitative finance career, these three MOOCs offer valuable resources. The "Financial Engineering and Risk Management Specialization" provides hands-on technical skills, while "Economics of Money and Banking" and "Financial Markets" offer broader insights into the financial system and market behavior. Together, these courses will equip you with the knowledge and skills necessary to excel in the competitive field of quantitative finance.