Structured Products - Fundamentals

At the end of this course, you will have a good understanding of structured products, having analysed:

• What they consist of and their main component parts.
• Their development and peculiarities within the overall framework of issues offered (EMTNs, funds, certificates/warrants…) as well as the impact of the Lamfalussy plan on public issues. In what way they are of interest to both issuers and investors.
• Their own particular terminology (protected capital and capital at risk, guaranteed and non-guaranteed coupon, callable structured product, launch/payment date and maturity date, directional structured products, promise structured products, mixed structured products).
• The associated risks and risk classes to which they are likely to belong depending on their level of protection (secure structured products, dynamic structured products, speculative structured products).
• The circumstances of their launch as well as the parties involved (technical committee, risk committee, commercial committee) and events characterising their life cycle.
• The underlying assets on which it is possible to establish them and how to use them effectively in managing a portfolio.

• History and origin of structured products
• International development and regulatory framework
  • Types of issue
  • Structured products within the context of mifid
  • European prospectus including "advantages and inconveniences"
  • Diversity of the range of structured products
• Democratisation and diversity of structured products
  • Issuers’ interest
  • Clients’ interest
  • Issue volumes
• Identification of the vocabulary used for characterising structured products
  • Guaranteed capital
  • Non-guaranteed capital
  • Guaranteed coupon
  • Non-guaranteed coupon
• Launch of a structured product
  • The idea of the launch
  • Validation of the launch
    • Minimum amount to be achieved
    • Examination of the launch conditions
• Development of the underlying assets
  • Equity
  • Rate/foreign exchange
  • Commodity
• Structured products as a portfolio management instrument
  • Awareness of use as an investment tool
• Introduction to trading on the structured products market
• The importance of the maturity date and behaviour on maturity