Commodities, Derivatives and Structured Products

Structured Products - Part 1


This eCourse consists of three modules. Module 1 looks at the main features of structured products and the risks associated with investing in them.

Module 2 looks at the key types of structured product, the risks associated with investing in them and the motives behind their issuance. These products include equity basket products, reverse convertibles, dual-currency bonds, quantos, range-index binary (RIB) notes, and credit-linked notes (CLNs).

Module 3 looks at the key features of FRNs, an instrument that is frequently seen in the structure product space, and the different variants of these instruments.


On completion of this course, you will be able to:
- Identify the key features of structured products, including upside participation and downside protection
- Recognize the main issuer and investor motivations with these products
- Identify the key risks associated with investing in structured products including, credit risk, market risk, currency risk, interest rate risk, default risk, liquidity risk, and volatility risk
- Define the key risks and outcomes associated with structured products
- Identify the key types of structured product, including equity, FX, interest rate and credit-related products and their key features
- Recognize the main investor and issuer motives with the different types of structured product
- Identify the key features of an FRN, including floating coupons, benchmark indices, reset dates, caps and floors, duration, and interest rate sensitivity.
- Recognize the key variants of FRN seen with structured products, including constant maturity-based FRNs, callable FRNs, inverse FRNs, and collateralized mortgage obligation (CMO) products.

Content Highlight

Module 1: Structured Products – An Introduction
Topic 1: Overview of structured products
Topic 2: Risks of structured products

Module 2: Structured Products – Components & Types
Topic 1: Structured Products Risks & Outcomes
Topic 2: Equity-Related Products
Topic 3: Interest Rate-Related Products
Topic 4: FX-Related Products
Topic 5: Credit-Related Products

Module 3: FRN Structures
Topic 1: Overview of FRNs
Topic 2: Constant Maturity-Based FRNs
Topic 3: Callable FRNs
Topic 4: Inverse FRNs
Topic 5: Collateralized Mortgage Obligation (CMO) FRNs

Administrative Details

Relevant Subject
Type 1 - Dealing in securities
Type 2 - Dealing in futures contracts
Type 4 - Advising on securities
Type 5 - Advising on futures contracts
SFC:2.00, PWMA:2.00
All Member: HKD640
Non-Member: HKD960
Staff of Corporate Member: HKD640