UCLA Master of Financial Engineering (MFE) Program: A Comprehensive Overview

The UCLA Master of Financial Engineering (MFE) program, housed within the prestigious Anderson School of Management, aims to equip students with the theoretical knowledge, analytical skills, and practical experience necessary to thrive in the demanding field of quantitative finance. This article provides an in-depth look at the program's curriculum, requirements, and overall structure, drawing on both official information and student perspectives.

Program Structure and Requirements

To earn a Master of Science in Financial Engineering from UCLA, students must accumulate 33 credits. The program is structured around core courses, elective courses, an Applied Finance Project (AFP), a Career Development Series, and a field experience component (internship). The program is designed for full-time students to complete in four semesters (May), but some may accelerate their course load and graduate in three semesters. Part-time options are available, allowing students to extend their studies.

The MFE program emphasizes a dynamic curriculum that combines quantitative finance theories with up-to-the-minute business practices.

Core Courses

The core courses form the foundation of the MFE curriculum, providing students with fundamental techniques and disciplines that underlie the practice of financial engineering. These courses include:

Investments: This class is a little too basic, spending weeks going over how simple cash flow discounting works, but it picks up faster near the end and gets the job done.
Financial Accounting: This course introduces the concepts of financial accounting and their underlying assumptions, including an examination of the uses and limitations of financial statements. Procedural aspects of accounting are discussed to enhance understanding of the content of financial statements. The course emphasizes using accounting information in the evaluation of business performance and risk.
Stochastic Calculus: The class is designed for you to pass. His explanations and derivations in class are phenomenal at presenting complicated concepts in simple terms.
Econometrics: Exceptionally knowledgeable and skilled at presenting econometrics concepts at a technical level. He will not rest until you truly have learned the material, and you will learn a lot of material.
Derivative Markets: This course covers the economic, statistical and mathematical foundations of derivatives markets. It presents the basic discrete-time and continuous-time paradigms used in derivatives finance, including an introduction to stochastic processes, stochastic differential equations, Ito's Lemma and key elements of stochastic calculus. The economic foundations of the Black-Scholes no-arbitrage paradigm are covered, as are the Girsanov theorem and changes of measure, the representation of linear functionals, equivalent martingale measures, risk-neutral valuation, fundamental partial differential equation representations of derivatives prices, market prices of risk and Feynman-Kac representations of solutions to derivatives prices.
Empirical Methods: Useful material, but the class doesn’t stand out either positively or negatively. Maybe a little bit too much time spent on old topics like Fama-Macbeth but otherwise a good class.
Fixed Income Markets: This course provides a quantitative approach to fixed-income securities and bond portfolio management, with a focus on fixed-income security markets.
Trading, Market Frictions, and FinTech: This is an MBA level course that doesn’t go beyond the surface level of a variety of topics and was considered a running joke amongst the entire cohort.
Risk Management: Haddad has an important quality of being able to explain why this material matters and will schedule extra time out of his day to help the class succeed. The main criticism is that it feels like the whole class is just spent talking about different variations of VaR which gets quite repetitive.
Data Analytics & ML: Study of data science, oriented toward decision making and predictive analytics. Topics include predictive and prescriptive models, panel regressions, text analysis, model validation and selection, models for discrete outcomes, and machine learning. Uses industry-leading Python statistical environment.

Elective Courses

Electives allow students to deepen their knowledge and skills in specialized areas of financial engineering. Students may choose from any FRE courses to fulfill these focus areas and general elective requirements. They may also elect to register for up to three (3) classes (maximum of one per semester) at select schools/programs at NYU. Courses outside FRE must be approved by the MS Financial Engineering academic advisor. Students may only enroll for courses at other schools of NYU that are not offered at the School of Engineering. Examples of elective courses include:

Quantitative Methods in Finance: This course covers the quantitative and computational tools used in finance.
Advanced Asset Management: This course emphasizes the application of state-of-the-art quantitative techniques to asset management problems. The course covers asset-pricing models in depth, portfolio optimization and construction and dynamic strategies such as pairs trading, long-term and short-term momentum trades and strategies that address behavioral finance anomalies.
Financial Concepts in the Cryptocurrency Industry: This course will introduce students to the financial concepts in the cryptocurrency industry. Basic topics covered include historical performance, valuation, regulatory concerns, and infrastructure of the crypto market. It will then move to derivatives, centralized and decentralized financing (DeFi), and staking.
Credit Risk Models: This course provides an introduction to the building and implementation of credit models for use by financial institutions and quantitative investors. The course covers the basics of corporate debt securities and provides an in-depth introduction to the credit derivatives markets.
Quantitative Equity Market-Neutral Strategies: Study of quantitative equity market-neutral strategies. At one end of spectrum are high-capacity strategies with multi-year time horizons. At other end are low-capacity strategies with milli-second time horizons. Students place themselves squarely in middle of this trade-off, enabling them to study both slow and fast signals. This is sweet spot where one can have sufficiently high Sharpe ratio to be rewarded on one's own merit rather than on one's verbal ability to explain away bad performance; and one can escape from technologically intensive rat race to have fastest computer co-located closest to stock exchange.
Behavioral Finance: Introduction and explanation of evidence of anomalous return behavior found in stock markets. Presentation of details on how "quant" firms apply evidence to manage equity portfolios, and seek to explain trading activity in equity markets. Exploration of some evidence that contradicts standard risk-return paradigm. Introduction of some psychological biases that researchers suspect are inherent to investors. Some results from psychology literature employed to explain irrationalities encountered in financial markets. Discussion of what stock trading strategies to avoid and what strategies to adopt.
Advanced Data Science for Finance: Advanced study of data science oriented toward predictive analytics with applications to finance. Choose five of eight courses offered, two during Spring term and three during the last Fall term.

Applied Finance Project (AFP)

The Applied Finance Project (AFP) is a crucial component of the MFE program. It provides students with the opportunity to apply their knowledge to real-world financial engineering problems. Teams of students complete an original applied research project that will develop or utilize existing quantitative finance tools and techniques. The project is designed to provide an in-depth exposure to at least one major task students will be expected to fulfill in the workplace.

MFE Career Development Series

The MFE Career Development Series (MGMTMFE 415) equips students with the necessary career management skills and tools to effectively identify, compete, and secure professional opportunities. The MFE Program is proud to offer Communicating with Impact, workshops within our required Career Development Series, which will make all the difference in your career. Learn the art of persuasion and effective articulation of technical concepts and executions, so that your work can be efficiently conveyed to decision-makers.

Field Experience (Internship)

The field experience component allows students to develop practical experience through an internship with a company in their proposed area of study (financial engineering). The summer quarter is the primary time to satisfy this requirement; however, internships may be pursued during the spring or fall terms. Students should expect to devote at least 120 hours during the term to their internship, and should be prepared to provide regular activity reports to their faculty advisor. Students considering research positions may also discuss their plans with the MFE program faculty director to develop alternative research/special projects opportunities to meet this requirement. MFE students will have their field experiences evaluated by their faculty adviser through enrollment in MGMTMFE 411, Fieldwork/Research in Financial Engineering.

Bloomberg Market Concepts

Students must also complete the Bloomberg Market Concepts e-learning course and earn the Acknowledgement of Completion to qualify for graduation. This is a zero-credit requirement, listed as FRE 5500. The Department will support your efforts to complete the training program by providing many Bloomberg terminals and laboratory assistants to answer your questions.

Admission Requirements

Candidates must hold at least a bachelor's degree (four-year degree or equivalent) from a recognized accredited institution. A strong quantitative background is essential, including coursework in linear algebra, multivariate calculus, differential equations, numerical methods, and advanced statistics and probability. This includes topics such as discrete distributions, continuous distributions, density functions, sampling theory, statistical inference, hypothesis testing, ordinary least squares, and t-statistics.

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Applicants must take either the GMAT or GRE. The GMAT or GRE score is valid for five years. The Graduate Division requires three letters of recommendation for an application to be complete. It is recommended but not required for admission to the MFE program to have work or research experience in a quantitative discipline. On average, admitted students have three years of full-time experience before entering the MFE program. TOEFL or IELTS scores are required of all applicants whose native language is not English. TOEFL test scores are valid for two years. Admitted applicants are required, upon arrival at UCLA, to take the UCLA English as a Second Language Placement Examination (ESLPE), an English diagnostic test, before being permitted to register. Admission will be canceled if you do not pass the ESLPE.

The application is intended to give you the opportunity to present a clear picture of yourself and of the qualities you feel the Admissions Committee should be aware of when considering your application. When filling in the application DO NOT submit a writing sample, a statement of purpose, a diversity statement or a fellowship application. Those items are part of the generic Graduate Division application and ARE NOT required for the MFE program. Please use the "Supporting Documents" section to upload any supplemental information (e.g.

The essay topics can be found within the MFE Supplemental section of the Graduate Division online application.

Financial engineering requires a combination of mathematical/quantitative abilities and creative thinking. Describe a project you worked on, either as a student or professional, that demonstrates your analytical and creative problem-solving skills. Tell us why this project was interesting to you.
Why does a career in quantitative finance appeal to you? Based on your abilities and what you know about careers in financial engineering, why do you think this is the right career path for you?
Feel free to provide any other information you think would help us evaluate your potential to succeed in the program.

Reapplicants to the MFE Program do not need to resubmit the two above essays. Please describe your academic or career progress since you last applied as well as the ways in which you have enhanced your candidacy. Include updates on short-term and long-term career goals. Please upload essays in PDF format. It is important that applicants respond to essay questions candidly and completely. Essays that fall significantly below the required word count will be detrimental to your application. Essays must be written by the applicant.

Career Prospects

In recent years, MSFE students (100-150 students) have pursued diverse career paths, including Desk Quant/Strategist, Risk Management Analyst/Associate, Trader, Quant Researcher, Technology/FinTech Analyst, Data Science Analyst, Quant Model Development/Quantitative Modeler, and Model Validation. The Career Placement Director supports students in their job search.

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Strengths and Weaknesses of the Program

One recent graduate has provided a detailed review of the program, highlighting both its strengths and weaknesses.

Strengths

Rigorous Curriculum: The program instruction is relatively competitive. The curriculum merges quantitative finance theories with up-to-the-minute business practices.
Dedicated Faculty: A number of instructors are knowledgeable and passionate about their respective fields, such as Panageas (Stochastic Calculus), Yavorsky (Econometrics), Reiner (Derivative Markets), Longstaff (Fixed Income Markets), and Haddad (Risk Management).
Career Support: Antoine and Jeremy of the career team are approachable and helpful, particularly in alumni network building.

Weaknesses

Inconsistent Student Quality: A significant portion of the student body lacks the necessary quantitative background, work ethic, and genuine interest in quantitative finance. Cheating on exams and reliance on ChatGPT are reportedly rampant.
Questionable Course Content: Financial Accounting is considered by some to be an inappropriate core course for an MFE program. Trading, Market Frictions, and FinTech is perceived as an MBA-level course lacking sufficient depth.
Career Services Limitations: The career team lacks first-hand experience in quantitative finance, potentially hindering their ability to provide effective career guidance.
High Tuition: The program has one of the highest tuition fees (and worst scholarships) among MFE programs.

Student Body Concerns

One major concern raised is the quality and preparedness of some students admitted to the program. The graduate observes that a significant portion of the class lacks the necessary quantitative background, work ethic, and genuine interest in quantitative finance. This creates a challenging learning environment, as instructors must cater to students with varying levels of preparation. Additionally, the graduate notes that cheating on exams and reliance on AI tools like ChatGPT are prevalent among some students, which undermines the integrity of the program.

Course-Specific Feedback

The graduate provides specific feedback on several courses within the MFE curriculum. Stochastic Calculus and Econometrics receive high praise for their knowledgeable and passionate instructors. Derivative Markets is noted for its rigor and technical depth, although it can be challenging for students new to the material. Financial Accounting is criticized as being an inappropriate core course for an MFE program, while Trading, Market Frictions, and FinTech is perceived as an MBA-level course lacking sufficient depth.

Career Services Assessment

The graduate expresses mixed feelings about the career services provided by the program. While the career team is praised for being approachable and helpful, particularly in building alumni networks, they are criticized for lacking first-hand experience in quantitative finance. This can limit their ability to provide effective career guidance and technical preparation for students seeking quantitative roles.

Program's Overall Value

Despite its weaknesses, the graduate concludes that UCLA's MFE program can be a valuable stepping stone for international applicants passionate about breaking into the US quant finance industry, provided they are willing to put in a lot of work and can afford the high tuition fees. However, the graduate cautions that the program may not be suitable for individuals who do not meet these criteria.

UCLA Anderson School of Management

The UCLA Anderson School of Management is all about teamwork and collaboration. The school has an excellent entrepreneurship center (the Price Center for Entrepreneurship & Innovation), and the student body exemplifies Anderson’s innovative spirit. Creative leaders who can think fearlessly and lead innovation while sharing their success are valued. Anderson’s classes are medium sized, with 305 students in the most recent incoming class, and the school emphasizes student leadership, group projects, and community. Anderson has several centers of study, including real estate, entrepreneurship, media, entertainment, sports, and finance. Being in LA offers students access to school-year internships, informational interviews, networking, and industry practitioners as instructors. In addition, hundreds of research centers and eight joint degree programs are available to Anderson students via the greater UCLA community.

Anderson follows the quarter system, with three ten-week quarters making up the first year, meaning students head into their summer internship with more classes under their belt than their peers from other schools. The capstone of the Anderson MBA program is the real-world master’s thesis, frequently fulfilled by the Applied Management Research (AMR) project in the second year. Beyond AMR, there are several industry-specific options for the capstone, including a coveted role managing the Student Investment Fund, founded in 1987 and worth more than $4M, for which up to 12 students are selected each year. The Business Creation Program (BCP) provides students an opportunity to start their own business while still in school with support from the Anderson Accelerator Mentors Program and access to on-campus working space via the Anderson Venture Accelerator. Anderson’s Onboarding program, which introduces students to the program, takes place in the summer and includes the courses “Foundations of Inclusive Leadership,” “Financial Accounting,” and either “Foundations of Finance” or “Marketing Management.” Students also benefit from career development provided by the Parker Career Management Center.

With more than 50 student clubs, Anderson offers students endless opportunities to learn and grow both professionally and personally while having fun and getting to know their classmates. From a social perspective, Anderson Afternoons provide an opportunity for students to wind down and engage with their classmates on Thursday afternoons. Anderson’s PULSE Conference brings together students, faculty, professionals, and business leaders in the fields of entertainment, sports, and technology. Hosted by the Center for Media, Entertainment & Sports, the event attracts more than 500 attendees annually.

Anderson looks for applicants who embody the school’s three pillars: sharing success, thinking fearlessly, and driving change. As you think about the authentic story that you want to tell about yourself, weave in examples that show how you exemplify these pillars. We look forward to learning about your perspectives and plans via your responses to the short essay prompts.

Essays are meant to complement the information provided throughout your application to highlight how an MBA fits into your career goals and journey. Strong essays are introspective, genuine, and succinct - while showcasing a clear vision for your future and the impact you plan to make on the Anderson community.

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