Portfolio Management Associate
The Head Origination & Active Management
MISSION AND OBJECTIVES
Portfolio Management (PM) is a part of the Corporate and Institutional Banking activity (“CIB”). This is a transversal department with dedicated teams across the different regions.
The main mission of PM is to contribute to risk return optimization at Origination, to actively manage the financing loan books and to contribute to capital optimization. The team is responsible for monitoring the process at Origination, with Coverage, on financing transactions with a focus on consumption of resources such as capital, liquidity, balance sheet and risk-return. The team is also in charge of initiating and implementing solutions to mitigate RWA or liquidity consumption.
PM Americas (“PMA”) is a transversal department within the Corporate Platform, with a regional management scope that includes the United States, Canada and Latin America. PMA is currently composed of 3 teams with all staff located in NY: Origination and Active Management, Credit Solutions & Products Engineering and Portfolio Analytics & Modelling (“PAM”).
PMA aims at ensuring a fair and optimal allocation of key financial resources in order to contribute to CIB value creation objective by:
• Maintaining discipline at Origination by contributing to risk-return and RWA management, liquidity cost, exposure analysis and CDS/Insurance market intelligence at the Resource Allocation Committee (“RAC”), in coordination with Coverage and Business Lines
• Back testing of clients profitability in liaison with Coverage, and concentration analysis
• Managing the loan books of the Corporate Platform from a risk, capital, liquidity and return perspective through execution of Active Management actions (Loan Sales, hedging with CDS and Credit Insurance, Balance Sheet Securitization)
• Management of the credit derivatives and CLO investment portfolio
• Create and maintain an expertise center by providing tools (RAROC Tool and Portfolio Analytics) and guidance, for methodologies in credit risk-return and value creation (RAROC, CEVA, CVC, EVC) for CIB
• Actively monitor the Corporate Loan Book (including budgeting, forecasting and monitoring of RWA, Exposure and P&L)
• Provide Senior Management including Head of CIB Americas with quarterly review of the key resources consumption across the Corporate Platform through the Strategic Resource Committee. Additionally, perform analysis and monitoring of the portfolio profitability from a risk return and value creation standpoint at client level on an ex-ante, prospective and ex-post basis
PMA has main interactions with Coverage, Financing Solutions, ALM, PM Middle Office, Finance, Trade Insurance & Syndication (“TIS”), Legal, Compliance, Loan Trading and Global Markets.
Review and enhance CIB value creation (transaction / client profitability) from a neutral advisory role at Origination as well as Active Management of the lending book.
Role at Origination
• Responsible for processing RAC approval requests, including taking minutes, saving email approvals and uploading transaction data into a database
• Review and analyze value creation of proposed lending transactions and overall client profitability to support the decision making process for the Chair at RAC
• Monitor and ensure consistency of the process at Origination
• Maintain and update trends at Origination as well as those of the overall loan market
• Participate in back testing of client profitability in liaison with relevant regional teams including Coverage
• Contribute to periodic updates, including profitability and pricing impact of evolving regulatory reforms, to Head of Region, Coverage and Business Lines
• Provide to CIB (Regions, Coverage and Business Lines) the relevant methodology, metrics and guidelines to steer the business at origination in terms of value creation (RAROC, CEVA) and RWA, liquidity and balance sheet usage
• On behalf of Corporate Platform, bring and share expertise regarding the value creation and cost of equity determination in coordination with CIB Finance
• Support senior team members
Active Management Role
After a period of up to 1-2 years, this position is expected to evolve into Active Management Role in addition to the ongoing role at Origination.
Based upon a deep knowledge of the underlying credit assets in the loan portfolio (term loans, revolvers, letter of credits, etc.), assess potential Active Management actions for capital or risk management purposes through close interaction with Coverage and Business Lines
• Actively monitor and analyze the capital consumption and credit risk evolution of the Corporate Platform loan assets focusing on activities and industry trends as well as single name capital/credit risk evolution.
• Make active management proposals.
• Provide recommendation to manage back-tested names, migration and concentration risks in the portfolio using publicly available information and internal resources.
• Propose enhancement of risk-return of a transaction by providing secondary market options (loan sales, CDS hedging and credit insurance, and bespoke solutions in liaison with Credit Solutions & Products Engineering team) to Coverage and Business lines
• Identify capital efficient transactions (CIB of Tomorrow – FRO Initiative)
• If needed, execution of approved Active Management actions and risk mitigation / exposure management actions as required by Risk
• Perform necessary due diligence with Coverage and related Business lines owning the assets
• Ensure satisfactory completion of all due diligence (legal, compliance) and obtaining necessary approvals
• Make recommendations on investments actions with a view to optimize the risk return for CIB
• Develop and maintain contact with coverage analyst pool and Financing Solutions Origination team as crucial source of information and feed-back.
• Keep abreast of economic, sector and market evolution affecting the loan portfolio as well as business/regulatory trends affecting the capital consumption of the Corporate Platform.
Provide ad hoc training to Coverage / Business lines on PM role at Origination, Capital and Liquidity topics as well as PM Active Management solutions
TRAINING AND OCCUPATIONAL EXPERIENCE
• Bachelor’s in Finance or Accounting; prefer MBA/MS
• 3-5 years of experience working in a large international bank or financial services firm
• Excellent knowledge of financial statement analysis, Microsoft Excel and Powerpoint
• Familiarity with Portfolio Management and general banking practices
• Knowledge of credit risk RWA calculations and modelling
• Knowledge of Basel, Dodd-Frank, Volcker and other regulatory issues affecting banks
• Some experience in credit products including loans, CDS, credit insurance and securitization
• Modelling skills and VBA programming are a plus
A recruitment policy that promotes equity and diversity:
Equity and diversity are at the core of our recruitment policy because we believe that they foster creativity and efficiency which in turn increase performance and productivity. We strive to reflect the society we live in, while keeping with the image of our clients.
We pride ourselves in applying non-discrimination rules to all our recruitments.
We will only contact the candidates selected who meet the job requirements in terms of training and experience.
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 195,000 employees, including more than 148,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
About BNP Paribas in Canada
In Canada, BNP Paribas is one of the dominant foreign banks in the country and is committed to building its platform even further. Since becoming the operational hub for the Group’s activities in North America in 2013, it has grown significantly to reach more than 700 employees and is expected to continue growing in the coming years. With the continued development of technology and financial fields, BNP Paribas Canada continues to attract experts with diverse backgrounds as well as young and ambitious talent from across the globe. With the international mobility and capacity that very few companies can offer, BNP Paribas prides itself in providing a superior foundation for building a professional career - a place for people to learn, to achieve and grow.