Training Courses

Complex Securities Workshop

Category: Capital Markets

Course level: Introductory to Intermediate

In house

This one-day workshop is intended to provide a broad-based introduction to the types of complex securities, their pricing and risk/return profiles. Delegates will gain an understanding of the structure of the main markets, how new securities are developed and the economic rationale for product innovation.The core of the course will be detailed descriptions of individual securities.

Case studies form an integral part of the course, to allow the delegates to consolidate the information and provide the basis for group discussions.

Objectives

By the end of this course, delegates will have a greater understanding of:

  • product definition
  • why investors buy them
  • pricing and problems with pricing
  • how the instruments are traded and settled

Length

1 day

Course Content

Overview of markets and product hierarchies

        Equities
        Fixed income
        Foreign exchange
        Commodities
        Derivatives
        New markets
            Credit derivatives
            Structured notes
            Hybrids
            New underlyings (inflation, weather, insurance)
        What drives new markets and innovation?

Equities

        Ordinary and preferred stock
        Participation notes
        American Depository Receipts (ADRs)
        Global Depository Receipts (GDRs)
        Contracts for Difference (CFDs)
        Equity swaps
        Stock options
        Index options
        Warrants

Fixed income basics

        Money markets
            Treasury Bills
            Certificates of Deposit (CDs)
            Commercial Paper
        Government bonds
        Corporate bonds
        Derivative instruments
            Interest rate swaps
            Interest rate and bond futures
            Interest rate and bond options
            Swaptions

Fixed income product variants

        Product hierarchy
        Variation of interest rates
            Floating rate notes
            Other variants
        Variation of principal repayment
            Index-linked bonds
            Convertibles and equity linked bonds
            Other variants
        Variation of maturity
             Put and call options
             Perpetuals
             Extendables and retractables
        Asset-backed bonds
             Mortgage-backed securities
             Collateralised Mortgage Obligations (CMOs)
             Complex CMO tranches
             Other asset-backed securities

Foreign exchange

        Spot and forward
        Currency swaps
        Futures
        OTC and exchange-traded options
        Exotic options
             Asian options
             Barrier options
             Multifactor options
             ‘Mountain range’ options (Himalayas, etc.)

Commodities

        Spot and forward
        Futures
        Average settlements
        Commodity swaps
        OTC and exchange-traded options
        Exotic options
             Asians
             Traded Average Price Options (TAPOs)

 Credit Derivatives

         Total return swaps
         Credit spread forwards and options
         Credit default swaps

Structured notes

        Equity-linked notes
        Interest rate-linked notes
        Currency-linked notes
        Commodity-linked notes
        Credit-linked notes
        Collateralised Debt Obligations (CDOs)

 

This course would be suitable for:

  • Finance and accounting
  • HR and training
  • Investment administration and operations
  • Investment professionals
  • IT and software developers
  • Legal & Compliance
  • New entrants
  • Risk management
  • Senior managers

This course would be suitable for these exams:

  • CFA - Level 1
  • CFA - Level 2
  • IMC
  • SII Certificate - Securities
  • UKSIP - Introduction to Investment
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