Understanding Structured Products certificate – Fundamentals

The certification is organised in collaboration with LUXSIPA. LUXSIPA's mission is to promote and position the Luxembourg structured products industry in a quality segment at the service of market players and public authorities. The Association maintains close links with the ABBL and is recognised by the Luxembourg financial industry as a centre of competence for any subject relating to structured products.

The objective of the present training is to cover all questions that could be raised while manufacturing, selling, handling or investing into structured products.

MODULE 1 – Structured Products – General Aspects

The objective of this module is to provide a clear overview of structured products and their environment:

Introduction & Positioning

• Simple definition of structured products
• Investment objectives and use cases
• Comparison with traditional assets (equities and bonds)

Core Building Blocks

• Interest rates and the concept of zero-coupon bonds
• Call and put options (intuitive approach, no formulas)

Typical Structured Products

• Capital guaranteed products
• Reverse Convertible
• Introduction to Autocall structures

Key Parameters Impacting Products

• Interest rates, volatility and dividends
• Maturity and funding considerations

Risks & Regulatory Framework

• Issuer risk
• Market risk
• Regulatory environment: MiFID, KID, Target Market

MODULE 2 – Understanding Popular Structured Products

The objective of this module is to deepen participants’ understanding of the most commonly used structured products:

Defensive Products

• Capital guaranteed products
• Partially capital protected structures

Yield Enhancement Products

• Reverse Convertible
• Autocall

For Each Product: Analysis Approach

• Reading and understanding Term Sheets
• Payoff analysis and scenario modelling:
• Bullish market
• Neutral market
• Bearish market

Selecting the Right Product

• Based on client profile
• According to market views
• Depending on the investor’s risk appetite

Additional Products

• Range Accrual
• Capped / Floored Floater

The training targets all professionals of the financial sector, manufacturing and distributing structured products, as well as consultants, lawyers and administration officers:

• Junior Private Bankers
• Senior Private Bankers
• Private Banking Assistants
• Junior Trader
• Junior Dealer
• Junior Structurer
• Risk Managers
• Legal & Compliance Officers
• Marketing Specialists
• SP Administration Specialists

To have basic knowledge of options and MiFID.

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 (minumum pass score : 60% ).