Counterparty Credit Underwriting - xVA, Fixed Income - VP/ED

Company Profile

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments and individuals from more than 1,200 offices in 43 countries.

As a market leader, the talent and passion of our people is critical to our success. Together, we share a common set of values rooted in integrity, excellence and a strong team ethic. Morgan Stanley can provide a superior foundation for building a professional career - a place for people to learn, to achieve and grow. A philosophy that balances personal lifestyles, perspectives and needs is an important part of our culture.

Department Profile

The Fixed Income Division is comprised of Interest Rate and Currency Products, Credit Products and Distribution. Professionals in the Division assess and actively manage risk, trade securities, and structure as well as execute innovative transactions in the fast-paced and constantly changing global markets. The Commodities Division is a market leader across a broad range of commodities markets, with expertise in areas including client risk management, financing solutions and investor products Sales & Trading.

From the largest global institutions to innovative new hedge funds, investors come to Morgan Stanley for sales, trading, and market-making services in almost every type of financial instrument including stocks, bonds, derivatives, foreign exchange, and commodities. Our professionals provide liquidity and content to clients around the world, actively assessing and managing risk, trading securities, and planning and executing transactions in fast-changing markets. As the needs of our clients become increasingly complex, we often develop customized solutions.

Overview

Morgan Stanley is seeking an Executive Director or Vice President in New York to work on the counterparty risk underwriting within its XVA desk with a focus on uncollateralized derivatives globally. The XVA desk owns and manages the credit counterparty risk on derivative transactions in coordination with the second line departments (credit teams, legal, etc.). Commodity derivatives often involve significant exposure to counterparties for the bank: understanding and managing this underlying risk is essential to protect against potential losses from counterparty default.

This is a front office role in the Fixed Income Division. Reporting will be locally and functionally to the team in NYC.

Key Responsibilities:

Due Diligence & Credit Risk Underwriting

• Assess, underwrite and “own” the counterparty credit risk associated with Fixed Income derivative transactions
• Evaluate hedging transactions based on the counterparties' creditworthiness, financial strength (including through financial modelling and scenario analysis) and risk mitigants
• Incorporate the directionality of underlying derivative exposure and consider idiosyncratic/ legal/political considerations and the unique characteristics of the structures
• Leverage your experience with a wide range of transaction types and collaborate closely with the sales, structuring, credit and legal teams to assess credit risk implications and negotiate appropriate mitigants

Underwriting Guidelines

• Help develop and maintain guidelines and policies specific to underwriting Fixed Income derivatives

Portfolio Management

• Monitor counterparty credit risk exposures within the Fixed Income hedging portfolio. Identify emerging risks/themes and discuss potential risk mitigation strategies

Stakeholder Management

• Build and maintain strong relationships with internal stakeholders including the sales & trading desks, credit management teams, legal, compliance, and senior management, fostering collaboration and effective communication

Qualifications :

• Bachelor's degree in Finance, Economics, Engineering or a related field; advanced degree (e.g., Master's, MBA) preferred
• Extensive experience (5+ years) in project finance, structuring, Fixed Income derivatives, counterparty risk management, credit underwriting, or related roles within a top-tier investment bank or financial institution
• A background in commodities or project finance is a plus
• Understanding of project finance structures, commodity and credit markets, derivatives products, and risk management practices in general
• Analytical mindset with strong problem-solving skills and attention to detail
• Effective communication and presentation skills, with the ability to articulate complex concepts and recommendations to senior management and stakeholders
• Ability to thrive in a collaborative, cross-functional environment and drive results through influence and effective stakeholder management

WHAT YOU CAN EXPECT FROM MORGAN STANLEY:

At Morgan Stanley, we raise, manage and allocate capital for our clients – helping them reach their goals. We do it in a way that’s differentiated – and we’ve done that for 90 years. Our values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - aren’t just beliefs, they guide the decisions we make every day to do what's best for our clients, communities and more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you’ll find an opportunity to work alongside the best and the brightest, in an environment where you are supported and empowered. Our teams are relentless collaborators and creative thinkers, fueled by their diverse backgrounds and experiences. We are proud to support our employees and their families at every point along their work-life journey, offering some of the most attractive and comprehensive employee benefits and perks in the industry. There’s also ample opportunity to move about the business for those who show passion and grit in their work.

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Expected base pay rates for the role will be between $160,000 and $250,000 per year at the commencement of employment for Vice President, and between $225,000 and $300,000 per year at the commencement of employment for Executive Director. However, base pay if hired will be determined on an individualized basis and is only part of the total compensation package, which, depending on the position, may also include commission earnings, incentive compensation, discretionary bonuses, other short and long-term incentive packages, and other Morgan Stanley sponsored benefit programs.

Morgan Stanley is an equal opportunity employer committed to building and maintaining a workforce that is diverse in experience and background. Our recruiting efforts reflect our strong commitment to a culture of inclusion, where individuals are hired, developed, and advanced based on their skills and talents.

Our workforce reflects a broad cross-section of the global communities in which we operate, bringing a variety of backgrounds, talents, perspectives, and experiences.

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