Hedge Funds Credit Officer

Full Time

Madison-Davis Client

Our team is seeking to add an experienced Hedge Fund / Fund of Hedge Funds Credit Risk Officer. This team member will cover a portfolio of hedge funds and fund of hedge funds clients across all Global Markets products and activities (OTC and listed derivatives, prime brokerage and clearing activities, fund of hedge funds financing and other structured products).

Job Responsibilities:

  • Due diligence of funds, preparing annual reviews, setting limits, managing exposures, opining on transactions, negotiation of legal terms, and active monitoring of risk.
  • Conducting Hedge Fund and Fund of Hedge Funds due diligences.
  • Completing the due diligence reports and client ratings.
  • Negotiating credit terms of Legal agreements (ISDA, GMRA, Clearing agreements etc.).
  • Managing client credit lines and transaction parameters.
  • Monitoring of portfolio and addressing daily overshoots across all applicable metrics.
  • Assessment – Performing hedge fund and fund of hedge funds due diligence including the review of relevant documentation, analyzing investment and operational risks, performing background checks, arranging and attending on-site due diligence meetings and drafting well-written, cogent, due diligence documents. Provide analysis and assist in opining on transactions and associated risks and limits.
  • Monitoring – Maintain a deep understanding of the counterparty risks metrics and exposures. Active continuous monitoring across a broad range of metrics and indicators and management of counterparty exposures in accordance with developing market conditions, counterparty risk profile and defined risk appetite. Following up on limit, threshold and policy breaches. Maintaining up to date risk information and the ongoing monitoring of hedge fund performance and creditworthiness.
  • Mitigation – Enforcing procedures designed to mitigate against losses in the event that a hedge fund defaults, including assisting in negotiating credit terms of legal documents (e.g. ISDA ATEs), negotiating and opining on Independent Amounts or margin requirements.
  • Approval – challenging the front office requests, approving specific credit files and limits (per prevailing policy requirements) and the associated credit ratings. Approving specific one-off transactions as required and facilitating the approval of files that are to be escalated further.
  • Responsibilities will also include handling of validation requests on credit limits and internal ratings, as well as approval of certain types of trades within delegated credit approval authority (where applicable). Will also be responsible for developing, testing and delivering solutions relating to assigned projects and goals as applicable.

Job Requirements

  • Experience in hedge fund and fund of hedge funds counterparty credit risk and/or hedge fund investment risk.
  • Experience reading and understanding detailed covenants and clauses in legal documentation such as ISDAs, FAAs, GMRAs, financing agreements, term sheets, prospectuses etc.
  • Knowledge of fund of hedge funds financing transactions and legal terms/covenants.
  • Knowledge of structured financing products is a plus.
  • Excellent communication skills.
  • Writing and presentation skills required.
  • Good analytical/statistics skills; understanding of means, standard deviations, correlation, normal distributions, sampling error, and basic performance statistics for the fund industry.
  • Knowledge of hedge fund industry and hedge funds structures, strategies and risks associated with products in scope
  • Knowledge of regulated funds structures and credit analysis is a plus.
  • Ability to lead in-person and/or virtual meetings with very experienced hedge fund managers
  • Knowledge of OTC and listed derivative products and drivers of associated risks.
  • Ability to meet deadlines and work independently as well as contribute to team goals.
  • Bachelor’s in Finance or related field. Masters a plus
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