What Happened To The Quants In August 2007

Discussion in 'Automated Trading' started by ASusilovic, Sep 12, 2008.

  1. Not only is Andrew Lo not a student, he is a prolific and well regarded professor at MIT *who also runs a quantitative hedge fund*.

    So his paper on what happened is well worth reading.
     
    #11     Sep 13, 2008
  2. raker

    raker

    Great Article Psytrade,
    I didnt understand the complexities of the CDO products, but this article gives a better picture of where all of this comes from .

    What a derrivative product "cdo's of cdo's of cdo's !!!"
    No wonder the market is doing what it is doing , it looks to me based on the article that we are experiencing large amounts of de-leveraging...

    I found the original poster's article on this site

    http://epchan.blogspot.com/

    which has some interesting articles , the guy who runs this site is a quant..
     
    #12     Sep 14, 2008
  3. Yes it is true that Lo is not a student.

    His student days were at Wharton. His academic travels have been notable.

    Usually he juxtaposes an idea of his against a traditional precept.

    I am familiar with the faculty/student modus at Tech. Roughly speaking, they do the grind there and it keeps problems alive and well for considerable periods of time. Rubberstamping is not a good characterization; it probably would be better described as keeping the home fires glowing. More nudgey than fudgey.
     
    #13     Sep 14, 2008