Deriving Lombard Lending Models

Upon concluding my graduation I had a strong desire to apply my technical skills in a leveraged environment. I was also longing to develop my leadership skills, which I thought best in a corporate environment. Credit Suisse offered me both of these opportunities and I therefore decided to join the Lombard team, who specialize in providing clients with the right lending value for a given portfolio of pledged assets. The team was a joint effort between Zurich, Wrocław and Mumbai - offering good opportunities to gain a deeper understanding of how people from varying cultures most effectively come together and collaborate. On the 1st of September 2020 I became part of this team and started my journey with Credit Suisse. 

What is Lombard lending

Lombard is an alternative form of lending that can be utilized if the counterparty possesses a portfolio of assets. The loan involves pledging the assets to the bank, who has the right to liquidate the portfolio in case the client defaults on their loan. The term Lombard originates form Italy, where loans have been issued in exchange for pledges ever since the middle ages. The flexibility of this type of loan makes it an attractive alternative to clients. An introductory video on Lombard lending cam be found here.

During my time at Credit Suisse I led the model development for a number of methodologies. This involved improving the existing models as well as introducing completely new ones. The bank has a global footprint- and there is a natural desire to offer location agnostic services whenever possible. Constant efforts were therefore required to align the views of senior managers, representing different teams and geographical regions, toward a common modelling strategy.