Financial Mathematics (MSc)

Program Overview

The Financial Mathematics program at Loughborough University equips graduates with advanced mathematical skills and industry-specific knowledge for careers in quantitative finance. Through rigorous coursework and an independent research project, students gain expertise in stochastic analysis, asset allocation, and risk management. Graduates are highly sought after by leading financial institutions and can pursue careers as quantitative analysts, risk managers, and portfolio managers.

Program Outline

Financial Mathematics at Loughborough University

Degree Overview:

The Financial Mathematics program at Loughborough University aims to equip students with the powerful mathematical skills and industry-specific knowledge needed for success in the finance sector. This intensive one-year program is ideal for graduates with a strong mathematical background who are looking to embark on a career in quantitative finance, or who want to pursue further research in related fields. The program emphasizes the application of advanced mathematics to finance, including rigorous instruction in stochastic analysis, measure theory, asset allocation, and risk management. Students will also have the opportunity to engage in their own independent research project, allowing them to delve deeper into a specific area of interest while gaining valuable research experience. Upon completion of the program, graduates will be well-prepared for positions in various financial institutions, including investment banks, hedge funds, insurance companies, and the finance departments of large corporations. The program also serves as an excellent foundation for pursuing a PhD in mathematics or related fields.

Outline:

The program consists of a series of taught modules, followed by a substantial research project. The taught modules cover a broad range of topics relevant to quantitative finance, including:

• Stochastic Models in Finance: Introduces students to the basic concepts of discrete financial models, including pricing and derivative strategies.
• Financial Mathematics: Explores more advanced topics in financial mathematics, such as Brownian motion, risk-neutral pricing, and option pricing theory.
• Computational Methods in Finance: Provides students with the practical skills needed to implement numerical methods for pricing options and other financial instruments.
• Stochastic Calculus and Theory of Pricing: Explores the interplay between stochastic calculus and financial modeling, including the Black-Scholes model and other important pricing models.
Students will also be able to choose from a range of optional modules, allowing them to tailor their learning to their specific interests and career goals. These optional modules include:
• Corporate Finance: Provides students with a comprehensive understanding of modern corporate finance and its practical applications.
• Applied Financial Econometrics: Introduces students to the quantitative techniques used in empirical finance and economic analysis.
• International Money and Finance: Examines the workings of international financial markets, including exchange rate behavior and global economic policy.
• Other specialized modules: These may include topics like Lie Groups, Geometric Structures, Functional Analysis, Asymptotic Methods, and Programming and Numerical Methods.
The final part of the program consists of a 14-week independent research project. This project allows students to apply their knowledge and skills to a specific problem in quantitative finance, with the guidance and supervision of a faculty member. The project culminates in a dissertation, which demonstrates the student's ability to conduct independent research and present their findings in a clear and concise manner.

Assessment:

Student performance is assessed through a variety of methods, including:

• Exams: Conventional written exams are held for some modules, typically contributing a significant portion of the overall assessment.
• Reports: Students may be required to submit written reports on various topics, demonstrating their understanding and application of the material covered in the course.
• Individual Project: The research project forms a significant portion of the overall assessment, with students judged on their ability to define a research question, conduct independent research, analyze and interpret results, and present their findings effectively.
• Group Projects: Several modules may involve group projects, allowing students to develop their collaborative and communication skills while working on a joint project.
• Verbal presentations: Students may be required to deliver presentations on their research findings or other topics, showcasing their communication and presentation skills.
The specific assessment weighting for each module and the overall program will be provided in the program handbook.

Teaching:

The program is taught by a team of experienced academics with expertise in quantitative finance and related fields. The teaching methods employed vary depending on the module, but typically involve:

• Lectures: Lecturers provide students with a foundational understanding of key concepts and theoretical frameworks.
• Seminars: Smaller group seminars allow for more in-depth discussion of specific topics, with students actively participating in discussions and problem-solving exercises.
• Independent study: Students are expected to engage in independent study and research outside of scheduled classes, reinforcing their understanding and applying their knowledge to specific problems.
• Group work: Group work allows students to develop their collaborative skills and learn from their peers.
• Workshops: Practical workshops provide students with hands-on experience with specific software tools and techniques.
• Flexible learning: The program offers a degree of flexibility, allowing students to tailor their learning to their individual needs and preferences.
The program also provides access to online material, including lecture recordings, course notes, and other resources. Students also benefit from access to computer labs and the Mathematics Learning Support Centre, which provides additional support and resources for students throughout their academic journey.

Careers:

The Financial Mathematics program at Loughborough University opens doors to a wide range of exciting career opportunities in the financial sector. Graduates of the program are highly sought after by leading financial institutions and organizations, including:

• Investment banks
• Hedge funds
• Insurance companies
• Large corporations
• Consulting firms
• Financial technology companies
Graduates can pursue careers in areas such as:
• Quantitative Analyst
• Risk Management Analyst
• Financial Modeler
• Trader
• Portfolio Manager
• Data Scientist
• Program length: One year (full-time)
• Start date: October 2024
• Location: Loughborough University campus, UK
• Fees: £13,000 (UK students), £28,750 (international students)
• Scholarships available: There are a limited number of scholarships available to support high-achieving students.
• Entry requirements: A 2:1 honours degree (or equivalent international qualification) in Mathematics, Engineering, or Science with a high mathematical content (50% of academic modules must be mathematically related).
• Application deadline: varies depending on your nationality and program start date.

UK fee: £13,000 Full-time degree per annum International fee: £28,750 Full-time degree per annum