Vital Stats
HOMETOWN: Kolkata, India
Master's Program:New York University (Courant Institute), Master of Science of Mathematics in Finance
Undergraduate Degree:Degree in civil engineering from Indian Institute of Technology (IIT), Kharagpur, India, in 2006
Honors: Ranked 3 in department of 33.
Internships: Summer internship at Citigroup, rotating through 15 trading desks.
work experience: Worked for Headstrong, a global IT consultancy, and Brics Securities as a quantitative analyst.
Mentor: Not really, but I spoke to a lot of people in general. In India, [quantitative finance is] still in a nascent stage; very few people are aware of the profession. It was more my own talking with directors of programs to ask for their feedback. I told them my background and asked if it was relevant to the program.
Email this Profile
Interview Conducted By Kerry Massero
|
- Qualifications and Background
- Aspirations
- Beyond the Numbers
AT: What did you do between your undergrad and joining the NYU program?
Agarwal: I started with a financial consultancy called Headstrong,[a global business IT consultancy and development firm based in India]. Headstrong works with financial firms, like many of the major banks such as Bank of America, Morgan Stanley, etc. to develop financial software solutions. We would either develop a product specifically for a firm or we'd develop our own technology and pitch it to financial services firms. The project I worked on was software for hedge funds that trade credit derivatives. We developed a product for funds that wanted software that would handle trading of credit derivatives right through to generation of reports of the trading activity. Existing software like Calypso is often too big for these firms and not focused specifically on one product. We provided trade capture software for credit derivatives; and the product could be integrated with Calypso.
This was my first job out of University, so it was more of a learning process for me, but I did help with the development as well as participated in client meetings to pitch the product. I worked there for six to eight months.
After working there I moved to Brics Securities in Mumbai, India, which has since been acquired by Lehman Brothers. There I was a quantitative analyst.
AT: Why did you leave Headstrong?
Agarwal: I left Headstrong because I wanted to get more involved in understanding products and trading them and getting into mainstream finance. After learning the basics at Headstrong, I wanted to get more market knowledge about different products, stocks, options and futures. I was also more interested in trading than developing software or developing trading strategies.
AT: What did you do at Brics?
Agarwal: I worked there for about six months. I worked on statistical arbitrage trading strategies for the Indian Stock market. I did this for equities and futures on the S&P CNX Nifty, the index for large companies on India's National Stock Exchange. While I was working there, I was admitted to the NYU program, and at that time Lehman Brothers had acquired Brics. So on one end I had the option of joining Lehman, and on the other hand I had the option to join the NYU program. After talking to many people, I decided to join the program. It was a tough decision. (This interview was conducted on August 13, 2008 -- a month prior to Lehman's bankruptcy filing).
I started the NYU program in the fall of 2007.
|
AT: Why did you choose New York University's Master of Mathematics in Finance program?
Agarwal: I was admitted by other universities. I liked [NYU's] location as it was so close to Wall Street. That was advantageous. I liked that part-time students who were working were part of the program. Their interaction with the program was important because financial newcomers don't know as much about the markets.
I also read some books by the professors teaching at the school. NYU has a very strong faculty and that was another factor.
AT: Have you had an internship through the program?
Agarwal: I did my internship at Citigroup. I was in the quantitative trading and analysis program. I rotated through 15 trading desks. I was able to get an understanding of what each desk does, what products are associated with the desks, how they hedge the products, who the clients are. I sat with them and got an understanding of how they trade. I was able to do some small work for them if they needed analysis or needed to run a report. As part of the internship, I was associated with the credit quant group -- I developed a product for the total rate of return swap desk that helped them to simulate credit portfolio value at risk. I also ran risk reports for higher management.
The desks I enjoyed the most were the forex options, correlation trading and exotic equity derivatives. These were new products to me and offered a very challenging and exciting opportunity to learn.
AT: What classes are you taking that you believe will be essential to helping you be more prepared for a job on the Street?
Agarwal: It depends on the kind of work. Some of the work, like trading, there are very few classes that will help. But classes that help you develop models like derivatives securities, stochastic calculus, algorithmic trading are all good for someone who wants to work on the buy side. The overall structure of the school is good. While I was at NYU, I also took some classes at Stern Business School so I could have a more intuitive understanding of financial services, just to build on what I am learning at Courant. We were already doing derviatives securities -- I just put in some more time to push myself to understand from both perspectives: the math angle and intuitive understanding.
|
AT: Why are you pursuing a career on Wall Street?
Agarwal: It all started at IIT. Lehman Brothers had come to our campus to talk about derivatives and life on Wall Street. They talked to us about how Wall Street works and how heavily they use math and how important math is for them. I could see a perfect match for my skill set. I graduated as a civil engineer, but I still believed that because of my analytical skills I could do well. I didn't have any background in finance, but I got a CFA and a financial risk management certification at the same time I was working at Brics and Headstrong.
AT: What role would you like to start in?
Agarwal: I've always been interested in trading. That's what I'd like to do. I really enjoyed my internship with Citigroup and would like to work there. It would be great if I could work on one of the desks, like volatility trading ,that is more quantitative but also very close to the market.
AT: Would you prefer to work on the buy or sell side?
Agarwal: Maybe in a few years or down the road I'd like to work on the buy side or for a hedge fund, but I believe the sell side gives you more exposure, in terms of products. Now I have a fair idea of certain products, the pros and cons, which are doing well, etc.
Once I have that experience, I would like to move to a hedge fund because of the exciting strategies that they use. It would also be challenging work.
In this type of market, it is difficult to be rigid. I am open and would consider all opportunities.
|
AT: Considering the state of the market, are you concerned at all about working on Wall Street?
Agarwal: Getting into the market when things are bad, we get to learn more and see more. When things are going easily, you don't learn as much; you go with the flow. At a time like this you can look at how mortgage rates affect credit markets affect equities, etc. I'm very excited. I'm not concerned about it. I'm enthusiastic.
AT: What three questions would you ask a prospective employer?
Agarwal: What is the day-to-day work that I would be doing there. What is a typical career path in the organization for a student like me? How flexible is the system -- is it easy to shift to a different department if I show aptitude and interest? Tell me about the culture of the organization: If there is a flat hierarchy, how do people gel together and deliver, do people work in groups or individual activities?
|
AT: What do you enjoy doing in your spare time?
Agarwal: I like to play tennis, go hiking and rafting. I like adventure sports. I like hanging around with friends. I enjoy Sudoku puzzles. I like Indian music and I like to watch Bollywood movies.
AT: Describe one of your personal goals that has nothing to do with math, programming, Wall Street.
Agarwal: My parents have never been abroad. They are excited to see the U.S. and other parts of the world. I'd like to take them out for a world tour one day down the road. I'd also like to improve the lives of some people in India. My dad works for the Lions Club, which is a nonprofit that helps people below the poverty line. I would like to associate myself more with it.
|
AT: Do you trade at all? Ever built any algorithmic models for trading?
Agarwal: No, I don't trade for myself. I do make recommendations based on my limited knowledge. It has panned out well for people; or maybe it's luck -- I don't know.
Markets are so random; if you are right 50% of the time, you are doing a good job.
AT: Choose one word to describe yourself.
Agarwal: Passionate.
|
|
