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,…