Market Risk vs Counterparty Risk

Hello fellow chimps, I have been working in the risk field 2 yrs from when I got my bachelor degree. Started off from corporate credit risk and now working in market risk. I do like working in my current capacity but I wonder what my future exits could be. I've seen some roles related to counterparty risk recently. I do see from the JDs the job is somewhat quantitative and shares certain common skill sets of market risk.

My questions are, how relevant is market risk as compared to counterparty risk and would you consider that as a good move to switch over from market risk to counterparty risk?

 
Best Response

The reason of such is quite a mix of everything. It looks to me capital market isn't as good as it was used to be (and the fate of market risk is pretty much tied to it). Even if I'm good enough, it's kind of rare to see openings in this area. In my current firm, business has been downsizing and there's been not much trading going on (what's left is just MM). It could be due to the fact that I work in a foreign location which might have to play safer. Understanding that things could better in larger firms but all in all the sunset is my overall feeling.

Personally speaking I haven't been aiming at sales & trading. I've seen market risk people switching over to corporate treasury which ends up to be a support role within the organization. So what's more important to me is if the job is meaningful. In this sense I also wonder where'd counterparty risk people move to.

Array
 

Perhaps I could add more on the role I'm looking at. It is for counterparty credit risk on market transactions. That's also the reason why I mentioned it was similar to market risk in terms of skillset as one can easily relate VaR to MTM, PFE, etc. On top of that I also see people moving from and to these 2 functions.

Array
 

Blanditiis ut tenetur nesciunt voluptatem voluptas optio. Tempora aliquid exercitationem dolor. Et tenetur doloremque tempore eligendi accusamus voluptas sapiente iusto. Minus quibusdam voluptate dolorem voluptates similique sit. Consectetur et occaecati libero nam est repellat. Atque eum praesentium et quod veniam autem.

Provident officiis quae fugit porro. A aut praesentium modi velit minus. Velit at praesentium quis facere.

Sit consequatur adipisci eos cum voluptatibus. Necessitatibus maxime facere ut provident et et exercitationem. At aliquid accusamus voluptas quae pariatur. Alias corporis nisi aliquid impedit tenetur ut.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”