Job Description
We are seeking an experienced Hedge Fund Credit Risk Manager to join our dynamic team in Singapore, reporting to the Head of Hedge Funds & Institutional Equities Credit Risk. The successful candidate will be a senior member of the Global Financial Markets Credit Risk team responsible for the assessment, monitoring, and management of credit exposures to Hedge Fund and High-Frequency Trading (HFT) firm counterparties. This role requires deep expertise in counterparty credit risk arising from derivatives, prime brokerage, securities financing transactions (SFTs), and cash trading activities.
As an experienced individual contributor, the role holder will lead complex credit assessments, challenge front-office proposals, represent Credit Risk in committees, lead development of risk projects and mentor junior colleagues.
Key Responsibilities
Counterparty Credit Assessment & Underwriting
- Lead comprehensive credit analyses and due diligence on Hedge Fund and HFT counterparties, including equity long/short funds, quantitative funds, macro funds, multi-strategy funds, systematic/statistical arbitrage firms, and market-making entities.
- Assess investment strategies, portfolio compositions, leverage profiles, liquidity positions, and risk management frameworks of hedge fund and HFT clients.
- Evaluate counterparty financial statements, NAV reports, performance track records, AUM, redemption terms, and investor concentration.
- Analyse trading strategies and their risk-return profiles, including directional, relative value, event-driven, distressed, macro, and statistical arbitrage approaches.
- Approve or recommend internal credit memos and risk limits for assigned counterparties.
Limit Setting & Exposure Management
- Approve, review, and recommend counterparty credit limits across products including OTC derivatives, prime brokerage, repo, securities lending, margin lending, FX spot/forwards, and clearing exposures.
- Monitor daily and intraday exposure utilisation against approved limits, particularly for HFT counterparties with high-velocity, high-volume trading activity.
- Analyse margin requirements, collateral positions, and haircut adequacy under both normal and stressed market conditions.
- Oversee and escalate limit breaches, excesses, and exception requests with appropriate risk-mitigating recommendations to the business.
Transaction Approval and Risk Mitigation
- Provide recommendations and approvals for complex transactions and portfolio deals
- Determine appropriate portfolio independent amount requirements and haircuts on capital markets products, leveraging quantitative portfolio margining methods and applying overlays for enhanced and dynamic risk capture.
- Analyze exposure metrics, including VaR and stress scenario analysis, to identify potential risks and recommend effective mitigation strategies. This also includes potential wrong-way risk, concentration risks, and conduct stress testing under various market scenarios.
- Ensure adherence to regulatory requirements and internal risk governance frameworks related to counterparty credit risk.
Advanced Risk Analysis and Stress Testing:
- Design, implement, and perform comprehensive stress tests and scenario analyses on hedge fund client portfolios. This includes utilizing both historical data and simulation techniques to evaluate portfolio resilience under extreme market conditions
- Analyze client portfolios regarding strategy, mandate, leverage, financing, and concentration risks (by position, sector, geography). Based on rigorous analysis and stress test results, assess margin sufficiency.
- Contribute to stress testing frameworks and model calibration (e.g., haircut grids, Initial Margining Models, Back testing).
Documentation & Legal Framework Review
- Review and provide credit risk input on legal documentation including ISDA Master Agreements/Credit Support Annexes (CSA), GMRA, GMSLA, and prime brokerage agreements.
- Assess collateral arrangements, margining terms, threshold amounts, minimum transfer amounts, and dispute resolution mechanisms.
- Ensure credit risk terms in documentation align with approved credit decisions and risk appetite.
Onboarding & Annual Review
- Conduct thorough onboarding credit assessments for new Hedge Fund and HFT counterparties, in coordination with Front Office, Legal, Compliance, and Operations.
- Perform annual and interim credit reviews of existing counterparties, including reassessment of financial condition, strategy changes, key personnel turnover, AUM movements, and regulatory developments.
- Monitor monthly client disclosures against documented covenants. Proactively identify emerging risks and recommend risk-mitigating actions such as limit reductions, enhanced monitoring, or relationship exit.
Committee Representation & Stakeholder Engagement
- Represent Credit Risk in various internal forums including Credit Committees, New Product Approval Committees, and Counterparty Risk Committees.
- Present credit proposals with clear, well-supported recommendations and risk-mitigating structures.
- Challenge Front Office proposals constructively while maintaining a commercial and partnership-oriented approach.
- Engage with Front Office, Other Risk Departments, Collateral Management, Operations, and Legal teams on cross-functional initiatives.
Regulatory & Policy Compliance
- Ensure adherence to applicable regulatory requirements including Basel III/IV counterparty credit risk framework, SA-CCR, EMIR/CFTC margining rules, and applicable MAS (Monetary Authority of Singapore) guidelines.
- Contribute to the development and enhancement of counterparty credit risk policies, procedures, and methodologies.
- Support internal and external audit, regulatory examination, and risk review processes.
Mentorship & Knowledge Sharing
- Mentor and provide guidance to junior team members on credit analysis methodologies, counterparty assessment techniques, and risk frameworks.
- Share domain expertise on hedge fund strategies, HFT business models, and market microstructure to build team capability.
- Contribute to training initiatives and knowledge sessions within the broader Credit Risk function.
Required Experience & Qualifications
- Experience: 8–12+ years of relevant experience in counterparty credit risk, with a strong focus on hedge funds, non-bank financial institutions, prime brokerage, or trading counterparties within a global bank, investment bank, or major financial institution.
- Product Knowledge: Deep understanding of derivatives, prime brokerage, securities financing transactions, repo, margin lending, FX, and clearing exposures — including the associated risk metrics (PFE, stress testing, CVA).
- Strategy Knowledge: Demonstrated ability to analyse diverse hedge fund strategies (long/short equity, global macro, event-driven, distressed, relative value, statistical arbitrage) and HFT/market-making business models.
- Education: Bachelor’s or Master’s degree in Finance, Economics, Quantitative Finance, Mathematics, Financial Engineering, or a related discipline from a recognised institution.
- Certifications (preferred): CFA, FRM, or CAIA designation is highly desirable.
Technical Skills
- Risk Quantification: Proficiency in counterparty exposure metrics (PFE, EPE, EEPE), SA-CCR methodology, internal model approaches (IMM), and CVA concepts.
- Financial Analysis: Strong ability to interpret hedge fund financial statements, NAV reports, Form ADV/PF filings, and performance attribution data.
- Quantitative Aptitude: Comfort with quantitative concepts including options Greeks, VaR, stress testing methodologies, and Monte Carlo simulation concepts.
- Collateral & Margining: Expertise in margin methodologies (initial margin, variation margin, house margin SIMM), collateral haircuts, CSA terms, and uncleared margin rules (UMR).
- Systems & Tools: Familiarity with financial systems (e.g., Murex, Bloomberg), exposure management platforms, and Microsoft Excel & PowerPoint. Python or VBA skills a plus.
- Documentation: Working knowledge of ISDA, CSA, GMRA, GMSLA, and prime brokerage documentation frameworks including market standard terms for Hedge Funds
Location:
DBS Asia Central
Job:
Risk Management
Schedule:
Regular
Employee Status:
Full time
