KLG has assisted the fixed income sales & trading division of one of the world's foremost investment banks establish a Quantitative Modeling Research Center in Budapest, Hungary.

Derivatives and structured products are a major component of our client's fixed income sales and trading operations.  These products require sophisticated mathematical models for valuations and risk management, and the firm has a history of employing modelers at the top of their field for these activities.  The client has a continuing need to develop increasingly more accurate models, with a concomitant need to add more professionals with expertise in mathematical modeling.  However, competition for these highly skilled professionals is fierce, particularly in financial capitals such as New York and London.  KLG was tasked with identifying alternative sources of highly honed quantitative talent for its Fixed Income and Derivatives group.

KLG focused on Central/Eastern Europe for sourcing these important and rare skills because of the renown of the academic institutions there in quantitative disciplines.  We developed a method for evaluating these institutions in all 27 countries that comprised the former Communist Bloc of Europe.  With this information in hand, KLG and our client conducted field work in Central/Eastern Europe, during which relationships with academic communities were forged, culminating in jointly organized conferences on Quantitative and Mathematical Finance.  The client ultimately chose to establish its Fixed Income Research Center in Budapest, Hungary.  The availability of world-class quantitative skills in Hungary will allow the firm to expand its quantitative modeling group by 40% in the near-term at the Research Center, an expansion that will have a direct impact on its fixed income derivatives trading business.

Please take some time to look at just a few of the many examples of how we have helped companies develop location strategies and achieve significant competitive advantages:

Credit Suisse First Boston, Global Business Center, Raleigh-Durham, North Carolina
Institutional Securities Operations Center, Baltimore, Maryland
Chase Credit Card Growth Strategy, Tampa, Florida
Fixed Income and Derivatives Research Center, Budapest, Hungary
Getting fired by a client … and bragging about it

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