Investment Education PLC

Structured Products
Last Updated - 23 July 2008
Todays Date -
Return to CoursePrint course
Duration 1 day
Available as an in-house tailored course



Structured products are appearing with increasing frequency as Retail Investment products (e.g. Guaranteed Investment Bonds or Precipice Bonds) as well as in a more sophisticated version, in pension, life and other institutional portfolios.


This course gives a good understanding of this class of products assuming only a reasonable basic securities knowledge (equities and fixed income).





        Fund Managers with no knowledge of this area


        Private Bankers

        Back & Middle Office staff

        IT staff

        Lawyers and Accountants (CPE/CPD credits)

        Commercial Bankers involved with retail investments


        Investment Bankers interested in adding these products to their own range of products


Course Content and Structure


Market Overview


-Growth of market


-Market Participants & Players


-Why SP are popular with investors


-Growth v. income products


-Mis-selling (FSA CP188 and SCARPs, Lloyds TSB and other precipice      





-Basic product-growth and income


-Principal protection how is it done?


-Participation how is it done?


-High yields how are they achieved?










Popular Asset Classes


-Equity (index, basket, single stocks)


-Interest Rates, FX, Gold


-Inflation, house prices


-Unit Trusts (principal protected ISAs)


-Multi asset (e.g. Britannia Building Societys Footsie/Gold/Halifax house prices)


Basics of Pricing


-Cost of principal protection


-Cost of Participation


-Cost of income option


Non vanilla products


-Capped calls, Knock outs, Cliquets


-Triggers, Dual currency deposits, corridors


-Precipice bonds


- Exotic products (Comets, Himalayas, Altiplano etc).