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sIDC Workshop series - fixed income and structured products explained

Dates:  13 August 2018 (8.30am - 5.00pm) 
Venue: Securities Commission Malaysia
Accreditation: SIDC CPE-approved: 10 CPE points


The programme should be particularly useful for intermediaries which are in the process of, or are considering, expanding their product offering. This course will focus on structuring and decomposing hedging, and investment strategies utilising exotic options. The programme also gives participants an understanding of how structured products with various asset classes are built, based on different investment objectives. Through case studies, participants will develop skills to understand the practical application needed to succeed in today’s market/environment.

  • Programme Delivery

    Programme Objective

    This one day programme provides the participants with a comprehensive guide on the construction and application of structured products in the current financial market.

    Learning Outcomes
    By the end of the programme, participants will:
    • demonstrate a practical understanding of structuring asset (investment) and liability (hedging / risk transfer)
    • discuss on applying structured products across asset classes
    • identify risks arising from these products and understand how to manage them

    Methodology

    Interactive presentations, Question-and-Answer sessions and case studies

    Target Audience
    Individuals
    Executives involved in product structuring (i.e. structured products department, product development, treasury, corporate finance), corporate finance executives, investment banking executives
     
    Institutions
    Investment banks, commercial banks, corporate finance advisory companies, stockbroking companies.
     

    Competencies

    • Foundational (Product Knowledge) - Capital Market Fundamentals
    • Foundational (Regulatory Knowledge) - Capital Market Products Regulation
    • Functional (Process Skills) – Investment Product Structuring
  • Programme Outline

     
      8.30 am Registration
      9.00 am Regulatory Requirement Governing the Selling of Structured Products
     
    • Key Regulations Applying to Structured Products in Malaysia:
    1. The design and issuance of structured products
    2. The disclosure and marketing of structured products
    3. The distribution of structured products
    4. Regulation of post-sales practices (i.e. once the products are in the hands of investors)
     
    • Implications from the Latest Innovations and Regulations
     10.45 am Coffee Break
     11.00 pm Application of Structured Products
     
    • How are structured products delivered to the market
    • Structured investment types
    • Risk & return profile of structured products
    • Principal protected vs. un-protected structures application of structured products in wealth management
    • Structured products as asset allocation strategies
    • Evaluating the suitability of structured products for an investor’s portfolio
    • Risks of investing in structured products: Credit risk, income risk, pay-out structure risk, market risk, liquidity risk, currency risk, option risk, call risk, counterparty risk
       1.00 pm Lunch
    2.00 pm Hedging and Risk Management of Structured Products Using Options
     
    • Delta hedging and managing structured product exposures in trading books
    • The consequences of delta hedging
    • What happens when the stock is illiquid
    • Application of static hedging and other techniques for managing structured product ‘exotic’ option components (e.g. barrier and digital options)
    • Measuring and managing optionality risks - the ‘Greeks’
    3.30 pm Coffee Break
    3.45 pm Hedging and Risk Management of Fixed Income Structured Products
     
    • Background review of fixed-income derivatives: FRAs, swaps, caps, floors, collars, swaptions
    • Measures of risk, including duration and convexity, applied to fixed-income structured products
    • Callables and puttables and combinations
    • Capped, floored, collared FRNs
       5.00 pm END OF PROGRAMME
  • Programme Fees

    Normal Price
    RM 950