This role will be responsible for assisting in managing the Bank’s counterparty credit risk to the hedge fund and private equity clients. He or she will have their own dedicated fund’s portfolio, spanning a broad range of investment strategies, and will be responsible for approving transactions, as well as reviewing and monitoring the counterparties on an ongoing basis. He or she will report into the Head of Hedge Fund Credit Risk and will be part of a larger team. The team ultimately reports into the Global Head of Hedge Fund Credit. Hedge Fund Credit Risk Management provides credit risk management and oversight across the Bank’s Global Markets division, including both franchise and prime brokerage businesses.
- Undertake initial credit due diligence for new clients by way of meetings with relevant personnel and the fund manager to fully understand the investment process and strategy, risk management approach and products traded (he/she would be expected to run these meetings). Then approve appropriate credit limits, margins and documentation terms on the back of their risk assessment of the hedge funds based on information gathered at the meetings and the relevant constitutional documentation provided by the client.
- Review and approve transaction requests for private equity funds, which typically include FX hedging and deal contingent trades. Engage closely with the sales team to review proposed trade/legal structures and diligence private equity funds as part of the approval process.
- Play a key role in the legal documentation process to ensure that appropriate credit covenants are included in legal agreements to allow the Bank to take action to close out portfolios and terminate trades in the event of a default or any credit deterioration (e.g. a sharp deterioration in performance)
- Ongoing dialogue and due diligence with clients and preparation of annual credit reviews, written reports which outline areas including the background of the fund management company, investment strategy of underlying funds, risk and liquidity management, and performance. This written report will highlight the key risks associated with each counterparty and outline the credit officer’s view of the group/funds
- Day-to-day transaction approvals, setting initial margin levels for trade requests received from sales teams across the Bank, and analysis of more bespoke structured transactions
- Manage the risk and exposures within their portfolio on an ongoing basis, using the various credit risk management and product monitoring systems within the Bank, including internal stress test information, exposure data and performance/portfolio data received on a regular basis from hedge funds
- A confident decision maker able to competently explain the reasoning, which supports credit decisions
- A strong team player, capable of working alongside colleagues in an effort to achieve team goals
- A self-starter, able to manage their own workload with minimal guidance from senior members of the team
- Articulate and at ease when interacting with internal and external clients