Executive Director, Hedge Fund Counterparty Credit Manager, Risk Management...

DBS Bank Limited; Singapore; On-site; SGD 180,000 - 250,000; Full time

Job summary

A leading financial institution in Singapore seeks an experienced Executive Director-level Hedge Fund Credit Manager for its Risk Management Group. The role involves managing credit risk for its Hedge Fund portfolio, including credit analysis, transaction approvals, and strategic oversight. Candidates must have over 15 years of experience in credit analysis specifically for hedge funds. This position offers a competitive salary and a dynamic work environment.

Benefits

Competitive salary

Dynamic environment supporting development

Qualifications

• Minimum of 15+ years of progressive experience in credit analysis focused on hedge funds.
• Extensive experience in Hedge Fund Credit Risk Management and Prime Brokerage.
• CFA and/or FRM certifications required.

Responsibilities

• Manage credit assessments of hedge fund counterparties.
• Provide recommendations for complex transactions and risk mitigation.
• Oversee the identification and monitoring of market risk exposures.

Skills

Quantitative risk management methodologies

Credit Risk Management

Analytical skills

Communication skills

Education

Master's in Finance, Economics, or a related quantitative field

Tools

Risk measurement tools

Financial software (e.g., Bloomberg)

Job description

Business Function

Risk Management Group (RMG) is responsible for the development and maintenance of risk management and internal control frameworks. We provide independent review and challenge to business to ensure that appropriate balance is considered in risk/return decisions. In addition, RMG is responsible for the monitoring and reporting on key risk issues of the Bank. To manage risk effectively and deliver strong financial performance, we invest significantly in our people and infrastructure.

Job Description

We are seeking a highly experienced and accomplished Executive Director-level Hedge Fund Credit Manager to join our dynamic RMG Credit team in Singapore, reporting to the Global Financial Markets Credit Head. This position is responsible for overseeing and managing the credit risk associated with DBS's expanding Hedge Fund (HF) portfolio across multi asset transactions. The successful candidate will provide expert credit analysis, transaction approvals, margin determination and strategic oversight for a diverse range of capital markets and derivatives products, ensuring alignment with the Bank's risk appetite, regulatory standards, and business objectives. This role demands a deep understanding of hedge fund strategies, traded product complexities, robust risk mitigation frameworks, and advanced quantitative methodologies, combined with exceptional leadership and communication skills.

Responsibilities

• Comprehensive Hedge Fund Credit Analysis & Management:
  • Manage the comprehensive credit assessment of new and existing hedge fund and asset manager counterparties, including in-depth analysis of their strategies, financial health, operational infrastructure, and risk management frameworks.
  • Perform rigorous evaluation of credentials, investment strategies, track record, leverage, investor base, liquidity, risk management frameworks, portfolio valuation methodologies, internal controls, service providers, transparency, and regulatory compliance. Particular attention will be paid to the nuances of mid‑sized Asian HFs and their specific risk profiles as targeted under the Prime Lite model.
  • Develop and implement robust risk policies, frameworks, and strategies to mitigate exposure across various trading products and financing activities.
  • Conduct thorough due diligence, including on‑site visits, conference calls, and reviewing legal documentation such as ISDA, Clearing Agreements, and financing agreements.
  • Determine appropriate credit ratings and recommend credit limits, collateral requirements, and other risk mitigants based on detailed analysis.
• Transaction Approval and Risk Mitigation:
  • Provide expert recommendations and approvals for complex transactions, encompassing OTC derivatives, repo/reverse repo, Total Return Swaps (TRS), securities lending, and financing trades.
  • Determine appropriate portfolio initial margin requirements and haircuts on capital markets products (e.g., interest rate swaps, repos, foreign exchange), 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.
  • Analyze 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.
• Prime Brokerage Expertise Ideal:
  • Leverage in‑depth knowledge of Prime brokerage or Multi Asset Risk Management experience and assist with the set up of governance, operations, product policies, and assessment of client trading strategies to manage associated credit risks.
  • Collaborate with IB and GFM teams to ensure seamless client onboarding, efficient trade processing, and optimal risk management for hedge fund clients.
  • Provide expert guidance on collateral management and financing arrangements.
• Market Risk Analysis:
  • Oversee the identification, quantification, and monitoring of market risk exposures impacting hedge fund portfolios.
  • Utilize statistical models, financial theories, and historical data to identify and quantify risk levels, ensuring optimal risk exposure.
  • Provide insights into market trends and their potential impact on client portfolios and strategies.
  • Develop and implement market risk coverage plans, monitoring, testing, and reporting for specific products.
• Quantitative Model Implementation and Enhancement:
  • Participate in the implementation, calibration, and ongoing maintenance of Initial Margin methodologies and ensuring meticulous alignment with DBS's specific adjustments for liquidity, concentration, and Wrong‑Way Risk (WWR).
  • Investigate, develop, and formally incorporate additional add‑ons for Concentration, Liquidity, and Wrong‑Way Risk (WWR) into the baseline frameworks.
  • Provide critical quantitative expertise and specifications for the design and development of the core margin calculation engine and associated system functionalities. Participate actively in vendor selection and system architecture discussions, providing technical oversight.
  • Collaborate closely with Model Validation and other Credit teams to obtain necessary clearances and ensure model accuracy, performance, and compliance with internal policies and external regulatory standards.
  • Provide expert technical guidance and support for IM methodologies, pricing models, and the generation of sensitivities (Greeks, e.g., delta, vega, gamma).
• Advanced Risk Analysis and Stress Testing:
  • Design, implement, and perform comprehensive stress tests and scenario analyses on hedge fund client portfolios. This includes evaluating portfolio resilience under extreme market conditions, assessing the impact of correlation breakdowns, contagion, and liquidity squeezes, utilizing both historical data and simulation techniques.
  • 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 and provide proactive recommendations for risk mitigation to Credit Officers.
  • Contribute to stress testing frameworks and model calibration (e.g., haircut grids, Initial Margining Models, Back testing).
• Portfolio Monitoring and Risk Oversight:
  • Continuously monitor hedge fund performance, Net Asset Value (NAV) trends, and portfolio characteristics to identify funds that may breach ISDA triggers or face challenges with performance and redemptions.
  • Proactively identify wrong‑way risk, concentration risk, and liquidity risk within hedge fund portfolios, especially for exotic options and highly leveraged HFTs.
  • Oversee the continuous monitoring of counterparty portfolios, including limit sizing, financial reporting, and credit covenant compliance.
• Documentation and Legal Agreement Negotiation:
  • Lead the negotiation and review of critical trading documentation, including ISDA/CSA, GMRA, and other bespoke legal agreements.
  • Ensure documentation accurately reflects agreed‑upon credit terms, collateral provisions, and close‑out netting capabilities, with necessary legal clearance and netting confirmation.
• Policy and Procedure Development:
  • Contribute to the development, maintenance, and refinement of Credit Risk Policies and Procedures pertaining to hedge funds and asset managers.
• Market Intelligence and Strategic Awareness:
  • Monitor investment industry fundamentals and apprise senior management of significant events that may have an adverse effect on the credit quality of assigned portfolios, particularly concerning the evolving landscape of Prime Brokerage offerings and associated risks (e.g., HFTs with intraday leverage, bespoke products).

Requirements

• Experience:
  • Minimum of 15+ years of progressive experience in credit analysis with a significant focus on hedge funds and financial institutions.
  • Extensive experience in Hedge Fund Credit Risk Management, Prime Brokerage, Counterparty Credit Risk, and Market Risk management.
• Education:
  • Senior‑level finance degree (e.g., Master's in Finance, Economics, or a related quantitative field from an accredited institution).
• Certifications:
  • CFA (Chartered Financial Analyst) and/or FRM (Financial Risk Manager) certifications are required.
• Technical Skills:
  • Deep technical understanding of quantitative risk management methodologies, specifically SIMM, VaR, PFE, SA‑CCR, and internal add‑on models - highly valued.
  • Proficiency in risk measurement and management tools and models.
  • Familiarity with financial software and databases (e.g., Bloomberg) is highly valued.
  • Comprehensive knowledge of traded products, investment strategies, and global financial markets, including OTC derivatives, repo/reverse repo, Total Return Swaps (TRS), securities lending, equity margin financing, structured financing products, and exotic options.
  • Expert‑level proficiency in interpreting and negotiating complex trading documentation (ISDA/CSA, GMRA bespoke legal agreements).
• Soft Skills:
  • Outstanding verbal and written communication skills, with the ability to present complex information clearly and concisely.
  • Strong analytical, problem‑solving, and critical thinking abilities.
  • Proven ability to conduct thorough credit due diligence meetings and assess complex operational and financial structures of hedge funds.
  • Strong analytical and numerical skills, capable of interpreting complex transactions and anticipating secondary risks.
• Regulatory Awareness:
  • Solid understanding of relevant regulatory standards (e.g., MAS 637, Basel III) and their impact on credit risk management for hedge funds.

Apply Now

We offer a competitive salary and benefits package and the professional advantages of a dynamic environment that supports your development and recognises your achievements.