About this Course

Structured products is gaining popularity in recent years as it delivers innovative and customised solutions to meet different investment objectives for investors. The use of different wrappers also allows such investment strategies to meet different investment constraints, tax and reporting requirements.

This course provides a comprehensive insight and understanding of structured investment products, its underlying derivative structures and pricing conventions.  Risk assessment, suitability and benefits of structured investment products are discussed in length to equip corporate with essential knowledge to consider structured investment products in organisation investment decision making process. 

Participants will be introduced to a wide variety of structured investment products and will learn how to analyse and understand their risk and return characteristics and the key drivers in their pricing, as well as an evaluation of their respective market, credit and operational risks for issuer, arranger and investor.  It should be especially useful for those in corporate finance, treasury and risk management.

Objectives

Upon completion of this workshop, participants will be able to;

• Have an overview of Global financial markets and Corporate Risk Management
  
• Learn the Prima in Structured Investment Products
  
• Understand the various Structures Investment Products from financial institutions
  
• Learn the considerations and application using case study on how to develop an investment policy for a  corporate using structured investment products
  
• Understand how structured investment products can be integrated into organisations’ daily decision-making processes to enhance stakeholders understanding and awareness of alternative investment in structured investment products
  

Target Audience

This workshop is beneficial for anyone who have keen interest and wishes to gain an insight into risk management.

Duration

Two days

Curriculum

Overview of Global Financial Markets

• How global financial markets structures have evolved since Lehman crisis;
  
• Government / central bank’s policy role and how are they reshaping the financial markets;
  
• Overview of foreign exchange market, interest rate market and commodity market: before and after the Lehman crisis, the development of global currencies (e.g. USD, JPY, EUR etc.) vs. Asian Emerging Markets currencies (SGD, CNY, CNH, HKD, IDR etc.
  

Overview of Corporate Risk Management (Enterprise Risk Management- ERM)

• Basic ERM infrastructure: Concept and evolution of ERM;
  
• Risk management at Corporate, Strategic Business and Project levels: Sources of Risks/Type of Risks, Creating value from Risk Taking/ Risk Hedging and Risk Management Process;
  
• Common approaches to ERM by organisations: CAS Framework, AIRMIC framework and COSO framework of Identification of Risk and Enterprise Management Objectives, Assessing Risk, Managing Risks: Principal Strategies and Methods, and finally Monitoring Risks.
  
• Risk Management and Corporate Governance: Concept and theoretical perspective of Corporate Governance (Agency Theory, Transaction Cost Theory etc.) and Concept / Components of Risk Governance (Roles and Responsibilities, Organisational Structure and Policies/ Procedures).
  

Prima in Structured Investment Products

• Overview of Structured Investment Products Market: History, Landscape after financial crisis, regulatory environment
  
• Introduction to Synthetic Assets:
  

                  - Asset Swaps

                  - Structured Notes

                  - Repackaging

                  - Structured Investment Vehicles

Structured Investment Products from Financial Institutions

• Overview
  
• Product Offering Motivation
  
• Product Design
  
• Investment strategies
  
• Building blocks: different wrapper, different underlying derivative components: FX linked, interest rate linked, cross asset classes
  

FX-linked (including Gold structures) Structured Investment Products

• Digital or binary option, barrier option, other exotic option: pricing and applications
  
• Correlation structures, autocallable structures and cliquet structures.
  
• Structured product: combinations of plain vanilla options and plain vanilla / exotics options
  
• Pricing / Mark-to-market analysis
  

Interest-rate linked Structure investment Products

• Yield Enhancement structured note / deposit features: Principal protection, guaranteed minimum returns, risk and reward, underlying embedded options
  
• Structured interest rate linked products: European / Bermudan callable bonds, Range Accrual, CMS-linked, Capped/Floored floating rate notes, inverse floater, target redemption notes.
  
• Pricing / mark-to-market analysis
  

Methodologies

This course is learner-centred and active participation by attendees are highly encouraged.  Case studies are used to ensure understanding and reinforce concepts.

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