Training
It is important that any potential investor understand the main features of the product offered or the main risks involved. Together with House of Training, LUXSIPA offers a training, which allows anyone to get deep knowledge in all the aspects of structured products.
The objective of the training is to cover all questions that could be raised while manufacturing, selling, handling or investing into structured products. This training is open to everyone but is particularly dedicated to all professionals of the financial sector as well as consultants, lawyers, administration officers.
This training program will be honored by a House of Training / LUXSIPA Certification under two conditions: The whole set of modules must be accomplished, and a final exam must be passed.
https://www.houseoftraining.lu/training/understanding-structured-products-certificate-9888
TARGET AUDIENCE
- Junior and Senior Private bankers
- Private Banking Assistants
- Structurers
- Risk Management
- Legal & Compliance Officers
- Marketing specialists
- SP administration specialists
MODULE 1 - General Aspects about Sructured Products
DURATION 0.5 day
This module should give a bright overview of the world of structured products:
- General definition
- History of options – what makes it possible to build SPHow do we situate SP compared to vanilla assets; investment rationale
- Who intervenes in the set-up: issuer, investor, structuer, traders …
- The cash flows of a very simple product: from a bond which pays coupons, to a 100% capital guaranteed SP which is linked to the positive performance of an index (not entering in any details about interest rates, options)
- Some vocabulary (protection, callable, autocallable …)
- Overview about the risks embedded in a SP (issuer, liquidity, valuation, underlying, valuation parameters …)
- Legal wrapper: EMTN, certificate, fund, deposit
- Review of basics about options: 4 pay-offs, from Long Call to Short Put, right and obligation
- First steps to situate the impact of volatility, interest rates, dividends, spot (trying to get a feeling for the basic Greeks)
- Capital protection: zero + call: first steps to build the product, theoretical example
- Capital at risk: reverse convertible + autocall structure: idem
- MIFID – Target Market, distribution channels (advisory, execution only, Discretionary portfolio management), costs and charges…
- PRIIPS Directive – KID
MODULE 2 – Technical aspects to build a SP
DURATION 1 day
All about the building blocks of a product:
- Yield curve, credit spreads & funding, CDS
- Options, vanilla and exotics
- Volatility
- Correlation
- Specificities of underlying assets
- Dividends & implicit forwards
- Why are high dividends the best pick for long call and short put?
MODULE 3 – Products
DURATION 1 day
Analysis of Term Sheets and breaking down the different blocks of certain products. In-depth training to understand certain products and how they behave from inception to maturity.
All about the building blocks of a product:
- The investment rational
- How the product is working
- What are the opportunities and risks?
- The building blocks and their sensitivities
- The relationship between the potential performance of the product and the risk that the investor is exposed to.
House of Training (www.houseoftraining.lu)
