Job vacancy: counterparty credit analyst for hedge funds, New York

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As the hedge fund industry continues to thrive, banks trading with the funds have a growing need for credit analysis support and due diligence work, even though hedge funds usually trade on the credit lines of their prime brokers.

Michael Page International has advertised in New York for a junior credit analyst at a well known investment bank that is not itself a prime broker, but trades securities and derivatives with about 800 funds, according to Simon Lewis, director of Michael Page's banking division.

For someone with two to three years of experience in counterparty credit analysis, it is a good opportunity to move into the hedge fund sector, said Lewis. Since hedge funds are a relatively new area, people with significant sector expertise are thin on the ground and in demand.

'I wouldn't say the field is booming,' Lewis said. 'A lot of it is replacing people who have moved internally.' However, he said the whole area of credit analyis, risk management and control is increasingly important to banks.

'The number of hedge funds is still expanding so there is a need for credit analysts.' It is a universe continually in flux, with some hedge funds shutting down as new ones are created, which means banks trading with them must keep up.

The job on offer involves working in a team of 10 conducting client due diligence calls and writing credit reviews, analysing portfolios, writing reports and helping with credit administration for existing hedge fund clients.

Candidates must have a good knowledge of swaps, foreign exchange and repos. 'It will involve analysis of the derivatives risks associated with hedge funds,' said Lewis.

The recruiter is looking for someone with good writing skills, who is able to deal well with clients. One part of the job will be negotiating legal documentation with clients.

Although the position does not require an MBA , one would be helpful, he said. The advertised salary, $50,000-$55,000, is 'on the low end of the range', according to Lewis, who added that the bonus would probably be about 20%. He pointed out, however, that this is a junior position, for someone who is likely to have held only one previous job since university.

'It's a stepping stone to being a specialist,' said Lewis. 'Obviously, pay for a senior credit analyst is considerably higher.'