Hedge Fund Credit Risk Analyst recruitment
DEPARTMENT: Global-EMEA Credit Department
Job Title: Credit Analyst – Professional Trading Groups (PTGs)
Grade: Senior Specialist / Associate Grade
Reporting: PTG Credit Manager, Global-EMEA Credit Risk
Location: London, U.K.
GENERAL FUNCTIONS:
Background
This position is based in London, U.K. and is part of a Global-EMEA team credit team. The position reports directly to the PTG Credit Manager, who is based in UK.
Newedge Group global presence gives its customers access to more than 500 financial derivatives contracts (interest rates, indices, equities) and over 220 commodities derivatives contracts (grain, cocoa, coffee, sugar, energy, cotton). In addition to its brokerage services on organised derivative and stock exchanges, Newedge has developed a range of brokerage services for OTC products and Foreign Exchange, as well as a one-stop service that helps its clients to optimise the management of their financial transactions.
Newedge’s product scope encompasses futures, options, OTC cash FX, SWAPS, fixed income securities, equities, securities financing and cash management products, plus any other products or services that Newedge may offer. Newedge’s client base includes hedge funds, financial institutions, security houses, external brokers, investment managers, etc.
The role is considered a specialist credit role focusing on “Professional Traders” such as market makers, proprietary traders, high frequency traders, arbitragers and speculators, as well as “Private Investment Vehicle” which includes family offices and living trusts.
Functions
This position is required to make credit decisions independently within the guidelines of the Newedge credit policy. For proposals that fall outside of this policy, strong recommendations based upon solid analysis are to be made. This role also requires working with credit teams in other geographies to ensure consistency.
The analyst will also sit as a member of the Newedge Credit Committee (UK or Global) when presenting new credit requests and reviews.
Close communication will be required with all team members in Global-EMEA, Americas and Asia, Market Risk team, GUK Head of Credit Risk, Global Head of Counterparty Risk, respective trading desks, and business lines. The analyst is expected to consult, collaborate, and share information within the risk teams where necessary. For significant credit requests there may be consultation with Newedge shareholders.
MAIN RESPONSIBILITIES:
Major responsibilities include:
Credit Analysis (Qualitative and Quantitative)
• Review existing and new client files and make credit approval recommendations within the scope of responsibility. This includes evaluating credit and transaction risk profiles by performing detailed credit analysis. Assessing counterparty risks and establishing credit lines (trading limits)
• Deliver recommendations to the Credit Committee for requests that fall outside of guidelines according to credit policy. Develop and maintain strong client relationships that are approved for credit
• Presenting Credit Limit Application Forms (CLAFs) to the UK Global Credit Committees. These will be files originated from the analyst in EMEA as well as global files originated from regional teams in Americas and Asia. Assist preparing and presenting memos to shareholders for significant requests
• Input financials/economic information into Newedge Rating Tool. Recommend and validate rating
• Conduct due diligence either by phone, at Newedge offices, or at client premises to better understand the client’s business and add value to the risk assessment conducted by Newedge
• The analyst is expected to manage their own portfolio of clients and provide back-up when required
• Conduct portfolio analysis using available tools such as Excel, Fimatrix (VaR engine), Global Risk (Stress Testing), Bloombergs. Work closely with Market Risk analysts to identify the risk issues (correlation, concentration, liquidity, stress, etc.) depending on the nature of the portfolio
Monitoring
• Collaborate with reporting analysts and the Market risk team to manage high-risk situations to protect the company. Proactively manage customer and counterpart exposure concerns
• Reviewing daily reporting on PTG clients. Assisting Reporting analysts with issues identified in daily monitoring reports and following up such issues (overruns, delayed payments of margin calls, and exposure monitoring) by ensuring relevant departments/clients are contacted and problems are effectively resolved. Ensure that account mapping is properly done.
• Keeping abreast of events and changing market conditions within the PTG industry that may have a direct impact on your portfolio and the Newedge portfolio in general. Disseminating this information within your team and updating client files accordingly.
Processes
• Ensuring systems and controls are in order such as accuracy of limit systems, limit status, and correct limit notifications sent are in order
• Run risk exposure reports for Credit Applications through the various risk monitoring tools (Prelud, Fimatrix, Bloomberg, Reuters…)
• Uses JIRA/LIRA (workflow tools) and/or Credit Application databases
• Develop and maintain strong client relationships that are approved for credit
• Files and check lists are complete and accurate. Sensitive information is secure
• Maintain accurate record keeping of due diligence visits, training, and portfolio expiry statistics and targets
• Maintain records on tracking credit workflow and priorities
• Enhance and standardize reporting tools as markets and products evolve globally
Ad hoc
• Assist management on risk projects and ad hoc requests.
ESSENTIAL SKILLS EXPERIENCE
Experience
• 3 year university degree
• 2-5 years in a credit risk or market risk
• Industry experience is required, with a concentration in credit and market risk analysis covering futures and options, treasury, OTC cash FX, SWAPS, fixed income securities, equities, securities financing and cash management products
• Experience with ISDA, and CSA documentation
• Detailed understanding of identifying and managing credit risk created by futures, swaps, options, repos, and other OTC transactions would be helpful
• This particular role focuses on professional traders who are often algorithmic and high frequency traders in listed futures and option markets. Therefore experience in trading models and market connectivity (electronic trading) is preferred. Strong understanding of pre-trade limits and post trade risk controls is essential also considered preferable
• The analyst should know there way around a balance sheet, income statement and financial ratios
• The analyst will need strong analytical and quantitative skills
• Understanding of credit management principles, concepts, practices, and standards and the ability to apply them to business requests and situations will be essential
• The analyst will need to be results oriented with the ability to adapt to changing business strategies in a dynamic and fast paced industry
Systems
Technical/Systems knowledge: To have a good working knowledge of
• MS Excel (VB/macro skills a plus)
• MS Word
• Bloomberg / Reuters
• E-Trading systems such as GL/TT/PATS or similar (preferred, but not essential)
Personal Skills
• Excellent communicator - role requires interaction with IT, operations, sales, trading, senior management, compliance, external vendors, and clients
• Project management skills: ability to take responsibility for a project and see through to completion
• Presentation skills: ability to speak with impact to middle and senior management
• Time management: balancing daily duties with general responsibilities can be a challenge
• Team player: effective worker in a team with a flexible attitude in helping colleagues if required
• Languages: fluent English essential
• Able to travel in EU
• Flexible attitude: to accommodate workflows and priorities
• Conflict resolution skills must be inherent with the ability to tell salespeople “NO, because..”
• Strong organisational planning skills
DESIRABLE SKILLS EXPERIENCE
Technical/Systems knowledge
• Mechanics of futures and options markets
• Value at Risk calculation (preferred but not necessary)
• Global Risk system (stress test systems)
• Due diligence; arranging and leading due diligence meetings
REQUIRED REGISTRATIONS:
None
POSITION WITHIN HIERARCHY:
Reports to :
Global Head of Corporate Credit
LEVEL OF AUTONOMY:
High
Newedge is a leading force in global multi-asset brokerage with a world-leading position in the execution and clearing of listed derivative products. Newedge offers access to more than 85 markets and has a presence in 23 locations across 17 countries.
Newedge offers a full range of execution and clearing services covering options and futures contracts for financial products and commodities, as well as for money market instruments, bonds, FX, equities and commodities on OTC markets. Newedge also provides a range of value added services including prime brokerage, asset financing, electronic trading and order routing, cross margining, and the centralized reporting of client portfolios.
Supported by two top tier rated shareholders, Société Générale and Crédit Agricole CIB, Newedge is independently run and regulated.
Newedge is an equal opportunity employer. For more information about Newedge, visit www.newedge.com.