Government institutions play an important role in the financial markets and derivatives markets, either by helping ensure the marketplaces are fair and well-functioning for participants, or by participating directly as a buyer or seller. Central banks, government treasuries, government agencies, and regulators all play a role, and each has a need for derivative analytics to support them in their analysis, trading and/or risk management activities.
Multilateral development banks, supporting the economic development efforts of many countries, also deal with derivatives as they provide project financing, loans, risk management products, and advisory services for member countries. They too require derivative analytics to them pricing and manage the risk of the derivatives and structured notes/loans they deal with.
|•||Price any derivative or structured product, from vanillas to exotics across all asset classes||•||Comply with government accounting standards for derivatives|
|•||Value large portfolios of derivatives and fixed income securities using market-standard practices (OIS discounting) and industry-proven derivative pricing models||•||Research and model the behavior of risk factors such as inflation rates and yield curves|
|•||Validate another institution’s pricing, risk management, and model validation practices for regulatory purposes||•||Provide derivative hedging products and risk advisory services to development bank clients|
|•||Issue and price structured notes or loans for the funding of development projects||•||Generate economic scenarios for stress testing|