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It's more likely underpaid raters at Moody's and S&P being intimidated by overpaid traders at Goldman Sachs and Deutsche Bank. I'm reading "The Big Short" (hig
by akadien 16y ago
It's more likely underpaid raters at Moody's and S&P being intimidated by overpaid traders at Goldman Sachs and Deutsche Bank. I'm reading "The Big Short" (highly recommended), and it puts all of this and the current GS hearings in the right perspective.
- yummyfajitas 16y agoQuant's at rating agencies get the same pay as any back office quant.
- mediaman 16y agoNot from what I saw. I worked at a very large Manhattan-based investment bank and we paid the research quants way more than the rating agencies. There was a brain drain from rating agencies to the bulge bracket firms. There's a lot more money in making the right trades (for yourself or for clients) than in writing reports.
- yummyfajitas 16y agoThe quants who figure out the right trades are front office quants. Back office quants (risk management, finance, operations) are not paid nearly as well, even in investment banks. Ratings is back office work, and is paid commensurately.