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