Corporate Credit Analyst

Bank of England ,
London, Greater London
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Overview

Job Description

The Bank of England is the UK's central bank. Our mission is to deliver monetary and financial stability for the British people. The Bank of England is a diverse organisation, made up of approximately 4,000 people - each committed to public service and dedicated to promoting the good of the people of the United Kingdom by maintaining monetary and financial stability. The Markets Directorate promotes monetary and financial stability by leading the Bank's market operations, and by using our presence, expertise and influence in financial markets to inform and shape the Bank's policy decisions and priorities. The Markets Directorate includes 6 Divisions which are: Financial Risk Management Sterling Markets Foreign Exchange Market Intelligence Middle Office Markets & Banking COO Department Overview The Financial Risk Management Division (FRMD) is responsible for managing the financial risks that the Bank faces in managing the Asset Purchase Facility ('APF') and in its operations in Sterling Markets (via the Sterling Monetary Framework, which supports monetary and financial stability) and FX Markets (in the management of both the Bank's and the government's foreign exchange reserves). Within FRMD, the corporate group is responsible for assessing, monitoring and managing the risks posed to the Bank/APF through its holdings of >10bn of sterling investment grade corporate bonds purchased as part of the Corporate Bond Purchase Scheme (CBPS) launched in 2016 and expanded in 2020. The corporate group is also actively involved with the Covid Corporate Financing Facility (CCFF) launched in 2020. Sister teams within Credit Risk manage the credit risks pertaining to about 400 counterparties across bank, sovereigns, central banks and government agencies, supra-nationals and CCPs. For each type of exposure, the team is responsible for designing assessment methodologies, carrying out credit assessments and allocating credit ratings. In this respect, the Credit Risk Team functions effectively as the Bank's internal rating agency. Credit Risk also sets exposure limits to entities and manages and reports on exposures against limits. Job description FRMD is looking to recruit an adaptable and collaborative analyst to be a key part of the small team responsible for risk managing the Bank/APF's exposure to corporates via the CBPS. This is a high-profile opportunity to work on a fast-moving portfolio of unsecured sterling investment grade credit risk with high visibility to Governors and to HM Treasury. The role involves producing regular credit assessments of the fundamental risk profiles of eligible companies, informed by credit rating agency reports, strategic and financial statement analysis and monitoring of bond spread and other market data developments. Analysts will present their assessments to the Bank's APF Risk Committee and will monitor the performance of eligible issuers closely on an on-going basis. The role involves collaborating closely with colleagues in market risk, second line risk, Sterling Markets Division and Middle Office on a range of risk, policy and operational issues related to the CBPS. It provides an exciting opportunity to work on a relatively new and high-profile Bank initiative at the heart of the Bank's market operations and to play a key role in a team with significant day to day impact and senior stakeholder engagement. Key responsibilities include: * Analysing the fundamental corporate credit risks assumed as part of the APF's Corporate Bond Purchase Scheme through regular credit assessments of the firms whose bonds have been purchased, promptly identifying potential downward rating migration and default risks * Making recommendations, supported by solid evidence, as to the continued eligibility and appropriate risk categorisation for a given issuer within the Financial Risk Management Framework approved by Governors * Presenting and defending those assessments at and contributing expertise to senior stakeholders at APF Risk Committee * Monitoring and responding promptly to relevant business and financial risk news-flow and rating, spread and other market data developments affecting eligible issuers across multiple corporate sectors, including producing a weekly CBPS Credit Monitoring Report * Contributing as required to management of the Covid Corporate Financing Facility * Developing an understanding of corporate business and financial risk and strategy, capital structuring, credit rating agency methodologies and corporate bond market dynamics * Peer-reviewing assessments completed by other analysts * Working closely with key stakeholders in market risk, second line risk, Sterling Markets Division and Middle Office on a range of risk, policy and operational issues related to the CBPS Role Requirements * A track record of high quality analytical work which evidences the ability to manipulate quantitative data, attention to detail, good judgement and creative thinking * Experience and knowledge of

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