The Principal, Portfolio Management EMEA is an interest rates and FX market expert who is responsible, under supervision and guidance of the Director, for the management of the Bank’s market and structural risk in FX and interest rates as well as the liquidity and funding exposures in designated local currencies, within the constraints of managing a mark-to-market book with P&L targets.
Given the underdeveloped nature of most local currency markets in which the Bank operates, the role goes well beyond managing local currency financial and market risks. Under the guidance of the Director, the role also involves:
- developing further both the internal and external framework to expand the Bank’s capacity to manage local currency market risks and offer local currency products meeting clients’ demand.
providing specialised financial guidance on what loan and bond features the Bank can offer to its clients in each local currency.
The core function of Treasury is to protect the Bank’s capital and liquidity, and within the liquidity and other constraints to optimise return on capital by achieving P&L targets. All of the lending, investing and borrowing of the Bank is internally match funded through the G7 and EMEA Portfolio Management desks, and as such this is where all of the risk which results from our natural activities pools.
The Portfolio Management – EMEA is the nexus for the local currency operations of EBRD’s Treasury. Its principal responsibilities are:
- The management and provision of liquidity in support of the Bank’s local currency lending activities. Crucially this risk comprises both the market risks and the liquidity / cash management risks of the Bank. It is the function of the desk to manage these risks, and where relevant run its own risk in pursuit of its P&L targets. Defining, designing and improving local currency loan and bond features that can be offered to clients, ensuring they meet as closely as possible demand in each market.
- Develop further both the internal and external framework to expand the Bank’s capacity to manage local currency market risks and offer local currency products meeting clients’ demand. Developing the external framework requires policy dialogue with domestic authorities (mainly central banks) and stakeholders to develop new products or enhance domestic markets.
- Add market knowledge to the LC2 in order to support the development of local currency capital markets
Facts and Scale
Portfolio Management – EMEA is responsible for the cash management and market risk management of the relevant currencies. The team is responsible for the liquidity provision and market development support for the Bank’s € 5 billion of local currency projects. It manages these risk through the use of both cash and where available derivative instruments. Aside for bond issuances swapped into hard currency, all local currency flows, whether from derivatives, unswapped local currency bond issuances, banking loans and bonds, Treasury investments, equity disbursements and divestments, TC flows, have a risk transfer into the books, and need to be physically managed by the team.
Portfolio Management – EMEA is a team of 6 including the director and 5 traders managing the Bank’s local currency risks in 22 currencies. Each trader manages a different set of currencies.
The team does have an annual budget to attain, currently € 10 million, but just as important are its activities in support of the operations of the Treasury and therefore the Bank as a whole. These go beyond just acting as a source of pricing, liquidity, risk warehousing and warehousing; they include developing products in currencies where there are no developed markets or no markets altogether to offer the Bank’s clients products that meet their needs. To do so, the team needs to spend time working with domestic stakeholders on developing their markets, therefore spending a lot of time on policy dialogue, capacity building, sharing its expertise with and convincing domestic counterparties about the importance and the benefits of such developments.
The Principal, Portfolio Management EMEA be responsible for meeting the P&L target set for his own currencies. Individual P&L targets for the role are currently set between EUR 1 and 3 mio, depending depend on the currencies managed.
No direct reports
The Principal’s main interfaces are:
- The Head and other colleagues from the Portfolio Management, EMEA team, as well as from the rest of Treasury
- Internal colleagues from various departments within the Bank up (OGC, Credit, Controllers, Banking, LC2)
- Representatives from domestic authorities (especially central banks)
- Representatives of market participants
Please note that CCTs, Interns and applicants working directly for a Board office can only apply for jobs advertised via the external careers website.