A few days ago I had an informal talk with a big QF wig from a bulge bracket firm.
His boss, head of the firm, some time ago made a statement in a letter to shareholders showing that either he was, diplomatically speaking, incompletely informed by his QF team, or his QF team was hopelessly stuck in the 90-s 2000-s style academic and axiomatic research. Or both.
I expressed my view to the guy – super diplomatically.
He claimed that in a bulge environment the academic, axiomatic approach is the right one.
I gave it a thought but I was not convinced at all. The value of axiomatic insights is hard to deny, but whatever you get from them is far removed from almost all practical applications, bulge or not.
That was only one part of the conversation, though, so my overall impression was not grim.
Quite the opposite.