Business: Credit Risk EMEA
Team: Credit Portfolio Solutions
Level: Senior Associate
Credit Portfolio Solutions EMEA
Credit Portfolio Solutions (CPS) is a global private side group with a presence in London, New York and Asia, and forms part of Credit Risk EMEA. CPS EMEA is located in London and deals with new derivatives and securities financing transactions for the CIB clients across the whole EMEA region. The team works on all derivative asset classes and with other products more broadly.
The group has various functions, including:
Helping determine the credit, funding and capital implications/pricing for credit intensive, or complex, bilateral derivative transactions. This ensures proper handoff to the Credit Portfolio Group (CPG) or to the various self-insured trading desks for ongoing management of these risks;
Looking proactively at how to structure those transactions to enable a sensible risk/reward evaluation of them by Credit and Client Executives;
Covering exposure analysis on traditional credit products (repos, loans etc), including more exotic structures around these;
Acting as a general centre of expertise for credit exposure of derivatives and securities, providing advice to EMEA Credit Officers and helping with / guiding methodologies and policies around these; and
Providing assistance on derivative issues for distressed or work-out clients, including helping to co-ordinate ISDA close-out processes.
In summary, the team works closely with marketers, traders, credit executives, CPG and Market Risk to help them understand the credit profiles of large transactions, develop mitigants for the risk, and price the credit, funding and capital appropriately; in addition they act as a general centre of expertise around credit exposure of derivatives and securities.
This open slot is for a Senior Associate. The role will be to cover markets and products within the region, developing close relationships with Sales/Trading as well as across the Credit organization and more broadly.
The team is responsible for calculating credit exposure and credit, funding and capital charges for large, sensitive or complex derivative trades referred to the team, as well as other exotic structures. This includes building a strong understanding for the bank’s derivative exposure methodology, full proficiency in the various modeling tools available (including all the sales/trading pricing tools), and appreciation for the appropriate credit pricing (CDS curve etc) for transactions.
Team members work very closely with CPG and the self-insured trading desks, navigating the Chinese Wall requirements in terms of new transactions, and partnering with the credit portfolio traders on risk management solutions such as CDS hedging. CPS is also engaged in the development of new risk measurement tools in partnership with Quantitative Research, and on improving the bank’s derivatives infrastructure.
In summary, the key over-riding ethos of the team is not simply risk quantification, but also to cover a broad solutions and advisory mandate around the credit, funding and capital risk of derivatives – in addition to raw numerics, helping to shape the softer more qualitative risk considerations are an essential part of the role.
Derivatives knowledge: A strong all-round knowledge of trading products, spanning derivatives on all the major asset classes (interest rates, equities, credit derivatives, commodities, FX etc) and repos, including exotic structures on all of these items. Ideally the candidate will also have some understanding of the structured credit/SPV/CDO/ABS space. In addition to knowledge of the products themselves, we are looking for an appreciation of the main risk drivers for these, including an understanding of the counterparty credit exposure of derivatives. Knowledge of ISDA/CSA documentation including the mechanics of collateral arrangements is desirable.
Strong quantitative skill-set and good breadth of experience: Must be highly numerate, very good with excel, and have prior experience of working in a quantitative or analytical role that covered complex structures and their risks. Relevant experience may have been gained in credit or market risk management, or a derivatives front or middle office area for example. Experience of counterparty credit analysis can be very useful, but is not essential if the candidate demonstrates a well rounded appreciation for risk issues.
Strong partnership and communication skills: Must be able to articulate a view, both clearly and logically, and be able to explain technical concepts to non-specialists; also must be able probe for additional information with either the client or product sponsors when required. Able to adjust one’s style for a variety of situations and be able to hold their ground as required. The individual must be resilient and be able to give each situation a fair hearing.
Credibility, influencing skills and leadership: Must be confident and commercial, and have the conviction to make a risk judgment, stick to it and be able to articulate why this is the case. Within a reasonable period of time the candidate must have the potential to become relatively self-sufficient.
About J.P. Morgan’s Corporate & Investment Bank:
J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets and investor services. The world’s most important corporations, governments and institutions entrust us with their business in more than 100 countries. With $18 trillion of assets under custody and $393 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. Further information about J.P. Morgan is available at www.jpmorgan.com.
JPMorgan Chase & Co. offers an exceptional benefits program and a highly competitive compensation package. JPMorgan Chase & Co. is an Equal Opportunity Employer.