What did you role involve at the Mizuho Bank?
Whilst working at Mizuho bank I researched and developed new Reverse Stress Testing scenarios based on departmental stresses, and creating new FX and interbank rate model; concluded weekly with updates and adjustments subject to meetings. I completed a variety of departmental revaluations daily, often manually overriding data points
to provide effective yield curves and datasets for modelling and trading. I interpreted, evaluated and collated political and economic news – using specialist Bloomberg software, various sources such as Reuters, and Microsoft Excel – to create daily and weekly departmental risk reports.
What was the most interesting aspect of your internship?
The most interesting aspect of the internship was researching and developing new Reverse Stress Testing (RST) scenarios: RST utilises the conventional methods of risk management in reverse; the aim is to predominately predict future events, and model expected asset price movements. The importance of RST to both academia and financial institutes is growing, and combined with the large increases in demand (for workers) in the risk management area, it was an amazing opportunity to learn from, and work on, a new concept. I was able to use my skills and knowledge effectively, and influence and benefit the bank greatly.
What advice would you give to students who are looking to undertake an internship?
There are four main points:
- Pick a placement based on your ideal (potential) post-graduate job; understanding the basic knowledge in your field and making them crucial contacts will put you in a good position when applying for jobs.
- Keep your contact links open, especially with your departmental boss; try to visit at the following Christmas, and Easter too.
- Consider the length of the internship; you need a summer, especially before final year.
- Finally, do not worry about the wage. University is expensive, and the internship is likely to be too. Check with the University’s CES for any support, and with the department. Some placements pay travel costs, whereas others pay a good wage. Why are you applying for an internship? For experience, not for money.
Other than the obvious benefit of having something great to put on your CV, what do you feel you got out of your internship? How do you think your internship has helped your studies?
The main benefit would have to be direction in the third year: my dissertation topic – Risk Determinants in EMU Benchmark Government Bond Yield Spreads – was practically decided whilst on the programme; I worked daily with bond yield data across all maturities, but I was particularly interested in government bonds as yield was dropping to (and below) zero due to geopolitical uncertainty and economic issues. I started to question what determined risk differential in monetary unions, and my dissertation topic formed nicely.
Has your experience changed your plans for the future?
Yes and no – Yes, because when I returned for the final year, I had a greater urge to focus on the present; passing my tests and exams, writing a good dissertation, and finally, enjoying the last year of study. But, no because I’m looking to work in Market and Liquidity Risk Management; my preferences were reaffirmed.
What’s next after graduation?
Enjoy the (last full) summer first-and-foremost. But to secure a job in risk management would be the ideal.