Structured Products

This course explains the different types of structured product, their features, characteristics, risks and potential returns.

It explains how the pricing of these products are affected by the specific structure, and the derivative features which might be included. The course also explains how the return on an investment can be amplified by different structures, and how they can also be used to mitigate risk.

During this course, participants will practice pricing and valuing different structure products through a range of exercises.

Suitability

This course is for individuals with a working knowledge of fixed income, equity, credit and option markets.

Learning Outcomes

At the end of this course delegates should understand:

The key characteristics of capital protected notes, reverse convertible notes and autocallables
How to price structured notes and calculate coupons
The mechanics of credit-linked notes

Course Content

Basics of the structured products market
Structured product cash flows
Styles of structured products
The role of the investment bank
Capital protected note
Characteristics and construction
Capital protection on the effective date
Calculating the option money
Changing the note profile

Exercises: Pricing a capital protected note and calculating the participation rater

Reverse Convertible Note (RC)
Characteristics and pay-out profile
Coupons and RC repayment
RC investors and rationale

Exercises: Calculating the coupon on a reverse convertible and examining the risks associated with a reverse convertible trader

Autocallable
Characteristics and structure
Pay-out profiler
Credit-linked notes
Medium Term Notes (MTN’s)
Underlying security
Structured swap participants
Hedging the payoff
Flooring and principal protected redemption

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of our clients would recommend Alpha to a colleague or peer

90%

of a cohort was promoted within 2 years after participating in an Alpha course.

96%

of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

Knowledge Exchange Evangelists

We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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The team are so friendly and pleasant to work with, everyone is very professional and keen to help us. Building a relationship over the past couple of years helps us to feel like the Alpha team are even more able to understand our needs and provide more proactive solutions.