Collateral Analyst

  • Competitive
  • London, England, United Kingdom London England GB
  • Permanent, Full time
  • Bank of England
  • 02 May 18 2018-05-02

This role is within the Financial Risk Management Division. FRMD sits within the Markets Directorate, which conducts the Bank’s market operations to implement monetary policy, provide liquidity insurance and manage the UK’s foreign exchange reserves. In addition, the Markets Directorate gathers intelligence on financial market developments to inform policymakers on the MPC, FPC and PRA Board. The role therefore has a stakeholder management dimension, in terms of maintaining relationships with counterparties.

FRMD is responsible for:

  • Managing collateral placed at the Bank, including portfolios of residential mortgages, consumer loans and corporate assets as well as securitisations;
  • Managing the market risk in the UK’s foreign exchange reserves;
  • Analysis of the creditworthiness of counterparties, issuers and central bank customers and managing risks within a limits framework;

Collateral Management is principally concerned with the risk management of private sector collateral delivered by UK banks for use in the Bank’s liquidity insurance operations. It also looks to expand the pool of eligible collateral in order to meet the demands of schemes. In doing so Collateral Analysts and Managers design the analytical framework underpinning the Bank’s risk management approach, carry out detailed assessments of UK Bank’s loan books and work together to become a centre of excellence in valuing and monitoring private sector collateral.

A unique opportunity has arisen to join the Collateral Management area of the Division, and more especially the Corporate and Consumer Assets Team (“CCAT”) to help deliver some of the Bank’s key strategic objectives as it assesses the increasingly diverse range of collateral and focuses on the application of risk frameworks to these different types of assets. We are looking for a senior analyst to provide analysis across the full range of our activities, with specific focus on:

  • Reviewing and developing the eligibility criteria for non-residential collateral accepted in the Bank’s operations and contributing to their practical implementation
  • Evaluating the risk management practices of banks wishing to post collateral
  • Assessing the quality of individual loan portfolios, proposing advance rates and ongoing monitoring of collateral accepted by the Bank
  • Increase the team’s visibility and engage with key stakeholders both internally and externally

Detailed Description

The Jobholder will contribute to the Division’s responsibilities by:

  • Formulate and apply risk policies by monitoring, valuing and risk assessing the various collateral types accepted by the Bank, with particular focus on portfolios of loans of Corporate, SME, Social Housing, CRE, PFI, Consumer, Auto and Asset Finance loans
  • Undertake the credit assessment of loan portfolios involving assessing the loan origination, risk management and loan servicing processes carried out by UK Banks (both Big 6 and Challenger Banks).
  • Present analysis and recommendations to Senior Management at Risk Committees.
  • Maintain stakeholder relationship with participant banks, with regular analysis of both portfolio performance and developments in the markets of the respective asset classes.
  • Work closely and maintain relationships with various areas both within the Bank and PRA.
  • Be involved in work to increase the Bank’s preparations to manage and dispose of collateral following the default of a counterparty.
  • Formulate risk policies and valuation methodologies, often starting from first principles and communicate them effectively within the Bank. This will require analytical thinking, and the ability to draw upon the work of others and developing a well-reasoned approach. The job holder will be able to identify and evaluate trade-offs between the ‘perfect’ solution and one that can be implemented.

Job Requirements

We expect the candidate to demonstrate at least several of the following technical skills:

  • Experience of securitisation (including legal, liability and asset side analysis)
  • Loan portfolio analysis skills with working knowledge of Rating Agencies methodology’s for assessing Consumer/Auto/SME ABS and/or working knowledge of loan origination and credit sanctioning process of Corporate banks
  • Cash flow modelling skills
  • An interest in the banking system and the Bank’s role in supporting and reforming it

The following technical skills are also desirable and will be considered:

  • Experience in central banking monetary operations (such as the Sterling Monetary Framework)
  • Familiarity working with UAT environments for testing purposes
  • In-depth knowledge of one asset type accepted as eligible non-residential loan collateral (e.g. corporate loans, consumer finance, PFI, social housing)

We expect the candidate to demonstrate the following soft skills:

  • An appropriate track record of undertaking high quality analysis and policy formulation.
  • Experience in leading business meetings with internal/external stakeholders
  • Flexibility to deal with shifting priorities and a willingness to get involved in many aspects of the Division’s work
  • An ability to work in an autonomous and organised fashion under pressure and to demanding deadlines
  • A demonstrated ability to pick up and apply new areas of knowledge quickly