Hedge Fund Credit Officer - Risks New York - United States
The role is for a Vice President within the Global Hedge Fund, Prime and Clearinghouses Risk Group who will support both the agency (prime and clearing) and principal (OTC derivatives and solutions) sides of the business in their daily activities with hedge funds The key purpose of the role is to enhance our hedge fund analysis in order to accommodate the Bank's business with hedge fund counterparties while safeguarding adequate protections for SG and upholding the Bank's global and local risk appetites. The incumbent would be part of the US offices of a global hedge fund team responsible for covering global hedge fund , fund of fund, and central counterparty credit risk. The role requires a person good knowledge and experience in risks associated with trading and hedge funds, encompassing both knowledge of the funds and the products involved. The role requires the ability to form, defend, and enforce a credit judgement based upon an independent opinion in a context that may require a rapid conclusion under pressure. This includes modifying requests from Front Office to better align transactions to risk appetite while maintaining the economic rationale for both parties to deal.
Assessment - Performing hedge fund due diligence on a portfolio of funds assigned, 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. Assist in opining on transactions and associated risks. Approval - approving specific credit files and limits within the incumbent's own delegation (where applicable) and the associated credit ratings. Approving specific one-off transactions as required within agreed guidelines and policies, in the course of everyday business. Facilitating the approval of files that are to be escalated further. 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. Monitoring - Maintaining up to date risk information and the ongoing monitoring of hedge fund performance and credit worthiness. Managing credit exposures in accordance with defined risk appetite. Following up on credit limit and policy breaches. The incumbent would be expected to help mentor and improve the skills of more junior team members, facilitate their peak performance, and help them become ready to take greater responsibility. Act to ensure that front office requests are addressed appropriately and ensure that the prudent level of risk appetite set by senior management in accordance with prevailing policies and procedures.
- This role will be responsible for a portfolio of hedge fund clients and focussed on carrying out core HFR responsibilities as described below:
Profile Required The VP will have responsibility for recommending credit limits and internal ratings and the approval of certain types of trades within delegated credit approval authority (where applicable). In addition, the independent opinions of the analyst will be accounted for in a wide array of difficult, complex, hedge fund risk issues. Preferably experience in hedge fund credit or investment risk. Experience reading and understanding detailed covenants and clauses in legal documentation such as ISDAs, GTBs, GMRAs, term sheets, prospectuses etc. Good knowledge of hedge fund industry in the Americas. Knowledge of OTC and listed derivative products and drivers of associated risks. Some knowledge of hedge fund structured products, including CPPI, leveraged facilities, and prepaid forward transactions would be advantageous. Good analytical/statistics skills; the person should understand means, standard deviations, correlation, normal distributions, sampling error, and basic performance statistics for the fund industry. Intermediate to advanced Excel, database, VBA, and Word skills highly desirable. Self-starter able to meet deadlines and work independently as well as contribute to HFR team goals when required. Good communication skills Articulate orally and in written form. Be comfortable meeting with very experienced hedge fund managers in person, be presentable, and be respectful.
Independent from the Business Lines, the Risk Management (RISQ) Division's mission is to effective challenge and contribute to the development of the SG Group's activity by facilitating the objectives of the Business Lines while maintaining independent oversight through risk evaluation and monitoring. The RISQ Division in the US supports all the activities in the Americas Region (US, Canada and Latin America), which is almost exclusively corporate and investment banking (GBIS) oriented.
The role of RISQ/RMA/HPC is to provide risk control services for hedge fund counterparties and investments, fund of fund counterparties and investments, and central counterparties risk management. In particular, it performs risk assessment, mitigation, approval, and monitoring processes for the Core Businesses at SG Group that transact with, clear for or invest in hedge funds, take collateral consisting of hedge fund shares, and central counterparties. The risk types that are within HPC's remit are credit, liquidity impairment and reputation risk resulting in credit losses.
Whilst RISQ/RMA/HPC is a service provider, its client is SG and by extension SG's shareholders. As such, (like all departments within the RISQ Division) it adheres to the philosophy of complete independence from commercial activities. In particular, it is a control function, not a support function to the business.
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Job code: 19000N5Y
Business unit: SG CIB
Starting date: Immediate
Date of publication: 17/08/2019