Client Type: Global Hedge Fund
Sector: Multi-Strategy Credit and Derivatives
Location: United Kingdom
Challenge:
The fund lacked a real-time view of credit and counterparty exposures across OTC derivatives and structured credit portfolios, resulting in unacceptable contagion and default risk during volatile market conditions.
Solution:
- Designed and implemented a real-time credit exposure management system
- Integrated derivatives and securities books into a unified dashboard
- Actively managed counterparty exposures using equity options and CDS strategies on underlying obligor names
- Prioritised proactive risk detection and default mitigation, not just post-event reporting
Result:
- Achieved zero counterparty losses despite elevated credit stress
- Enabled agile exposure reduction and hedge deployment in real time
- Became a mission-critical tool for credit and counterparty oversight post-GFC
Value Delivered:
Delivered institutional-grade credit risk governance and protection, without the complexity or cost of a full bank XVA desk.