Position Profile

Job Title:  Senior Manager, Trading and Derivatives

Work Unit:  Treasury and Risk Management, Capital Markets

Ministry:  Alberta Treasury Board and Finance

Competition Number:  1038638

Date:  October 2016
 

Position Summary

 

The Capital Markets group within the Treasury and Risk Management Division is responsible for debt issuance and management, working with other departments in the evaluation and negotiation of major projects with a financing component, and for policy development, portfolio research and performance analysis for the Province’s multi-billion portfolio of investments. 

Reporting to the Director, Financing, the Senior Manager Trading and Derivatives will have a senior role in planning, coordinating and implementing debt and related derivative activities, including trading the direct debt of the Province of Alberta and debt issued for provincial corporations. The incumbent also provides support to corporate finance activities of the Province, including the evaluation of financing proposals from other government departments.

The incumbent is expected to maintain current knowledge of developments in capital markets as well as the Province’s debt portfolio to ensure that the Province’s debt management activities provide the best value for taxpayers.  The incumbent will be responsible for supervising the existing Cash and Derivatives Trader whose work will support the completion of the responsibilities described above, with a particular focus on short-term debt issuance.  The incumbent will be expected to represent the division on various internal committees and will be required to present to the Boards of TRM client agencies (ACFA, ATB, AFSC etc.).  Other activities such as regulatory and governance matters related to management of debt and debt forecasts for the Government of Alberta are also included.

As a member of the Capital Markets team, the Senior Manager, Trading and Derivatives will also be expected to participate in other group activities, possibly including activities related to portfolio management and/or finance projects.

Specific Accountabilities

 

Develop and execute debt issuance and derivative objectives for the Government of Alberta.

  • Assist in the development and execution of annual borrowing plans and implementation strategies
  • Identify and evaluate borrowing opportunities, including domestic and international syndicated issues, private placements, medium term notes (MTNs) and structured notes.
  • Execute debt and derivative transactions as needs and opportunities arise.
  • Monitor ongoing debt issuance to provincial corporations to identify opportunities to support corporate finance activities of the Province.
  • Analyze and execute strategies for interest rate and currency risk management using financial derivatives such as swaps, swaptions, caps, collars, etc.
  • Contribute to ongoing research projects related to debt and debt issuance policies and approaches, including integrating the debt policies into the broader fiscal framework.

Monitor and analyze the performance and risks of the government’s debt portfolio on an ongoing basis to provide a better understanding of performance to the division, department and Minister and identify any performance issues that need to be addressed.

  • Perform in-depth analysis of what-if and new issue impact analysis within the debt issuance strategies.
  • Participate in the evaluation of large, cross-government projects with significant financing components, including the evaluation of project financing and project viability (projects such as public-private partnerships).
  • Report performance summaries to other parties in the division, department and  the TBF Asset-Liability Committee. (ALCO)

Maintain an effective working relationship between the Treasury and Risk Management Division and other government ministries and lending entities that receive funding from debt issuance.

Contribute to government policy development and review as it relates to debt and debt issuance.

  • Prepare briefings, recommendations for orders in council, and other documents as necessary when amendments to legislation or regulations are proposed
  • Research strategies for managing the Province’s broader financial risk, including balance sheet and income risks.

Knowledge / Experience

 

The incumbent should have a strong knowledge of debt capital markets, and/or financial risk management.

A University degree in the area of investment finance (or similar) supplemented by related (3+) years relevant capital markets related experience. 

It is preferred that the incumbent possess the Chartered Financial Analyst (CFA) or similar professional designation.

Leadership and Business Know-How

 

Financial markets are complex and changing.  With the introduction of innovative financial products and financing techniques, the debt capital markets have become increasingly sophisticated.  The incumbent is required to understand market developments and techniques to manage the Provincial debt portfolio and effectively assist in the execution of large value trades (in excess of $1 billion).  Increased market volatility adds to the pressure to make quick decisions.

In particular:

  • Requires an understanding of the changing international economic environment and its implication for international and domestic interest rates, currencies and the supply and demand of various debt instruments. 
  • Understanding of the debt management process, objectives and constraints as they pertain to debt management portfolios.
  • Quick decisions to be made as borrowing market conditions continuously change.
  • Understanding evolving financial market tools and techniques and their use in debt management.
  • Effectively communicating with Canadian and international bankers/dealers and comprehending and selecting the relevant information from the mass of information received daily.
  • Understanding and use of relevant computer software and modeling techniques for actively monitoring and analyzing the provincial debt and proposed debt transactions.  Capability to effectively explain the system requirements and ensure that any new software is developed and tested to the specifications.

Problem Solving

 

Development of debt portfolio strategies are increasingly complex and technical in nature requiring the ability to integrate and synthesize conflicting or competing issues into an integrated policy framework.  On-going training in complicated fields of study, such as the evolving world of derivative instruments, is vital.

The ability to build and maintain a good working relationship with a variety of departmental and other stakeholders at senior levels is critical.

Complex transaction related issues must be communicated to a variety of individuals with a broad range of knowledge of the issues.

Relationships / Contacts

Clients Frequency Nature and Purpose of Contact
Internal

Assistant Deputy Minister, Treasury and Risk Management

Ongoing

Receive direction and provide support in the accomplishment of divisional objectives

Senior management staff and officials in Alberta Finance

Quarterly and when required

Coordinate preparation of Debt reports and communications

Alberta government departments, such as Corporate Human Resources and Justice

Ongoing

Participate in high-level initiatives and highly complex issue areas

Investment managers for the Government

Ongoing and as required

Regular liaison between Finance and AIMCo

External

Capital markets and Investment Banking representatives

Ongoing and extensive Maintain industry contacts to establish and execute debt strategy

Impact and Magnitude of Job (Scope)

 

The incumbent shares the responsibility for the management and execution of public debt and derivative transactions for the Province and relevant Crown corporations that require financing. The incorrect execution of borrowing or risk management transactions can significantly affect borrowing costs and the reputation of the Province in financial markets. Debt and derivatives transactions are conducted by the incumbent independently with parameters proscribed by policy and the Director, Debt Financing.

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