VP, Hedge Fund Credit

Full Time

International Bank

Office Status: Hybrid

Overview :

The Hedge Fund Credit Officer will be responsible for assisting in managing counterparty credit risk to US hedge fund clients. You will have your own dedicated funds 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. The Credit Officer will report into the Head of Hedge Fund Credit Risk Americas and will be part of a larger team. The team ultimately reports into the Global Head of Hedge Fund Credit, based in New York.

Your Key Responsibilities:

  • Undertake initial credit due diligence for new clients by way of meetings with relevant personnel at the fund manager to fully understand the investment process and strategy, risk management approach and products traded (the credit officer would be expected to run these meetings). The credit officer will 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 day-to-day transaction requests and analysis of more bespoke structured transactions. This includes setting initial margin levels for trades received from sales teams across the Bank. Experience covering private equity funds will be considered a plus
  • 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
  • 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
  • Work with the Bank’s Collateral Management team as required in order to resolve any margin/collateral issues; keep up-to-date with market developments affecting the hedge fund sector, e.g. regulatory issues or weakness/stress in particular asset classes; develop and maintain a network of both external and internal business contacts

Your Skills and Experience:

  • Degree level education or equivalent, with significant experience in managing hedge fund credit risk. Ideally, you will also have prior experience in managing private equity credit risk
  • Knowledge of hedge fund sector which should include an understanding of a broad range of investment strategies and their associated risks
  • Product knowledge should cover all major derivative instruments and products/services with a full understanding of their respective risk characteristics. Ability to calculate and quantify transaction risk is also desirable but not essential
  • Understanding of master trading documentation, particularly International Swaps and Derivatives Association (ISDA), Global Master Repo Agreements (GMRA), Futures and Options (F&O) and Prime Brokerage. This should include sound understanding and knowledge of the principal risk mitigating clauses employed across the industry
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