Commodities, Derivatives and Structured Products

Complex Bonds and High Yield Bonds


The regulators (HKMA & SFC) issued circulars in 2018, reminding intermediaries to observe the selling practices requirements and suitability obligations when distributing high yield bonds and complex bonds.

This course outlines the basic structure, features and risks of high yield bonds and complex bonds. There will be a focus on Contingent Convertible bonds (CoCos) concerning how they are structured and function. With this knowledge, the intermediaries will be able to help their clients understand the complex products before making an investment decision.


On completion of the course, you will be able to:
- Identify high yield and complex bonds
- Explain the special features of high yield and complex bonds
- Describe the main risks when investing in these higher-risk securities
- List the regulatory (SFC & HKMA) requirements when selling high yield and complex bonds.

Content Highlight

1. Introduction: Complex Bonds and High Yield Bonds
2. Capital Structure
3. Bonds: Special Features
4. Loss Absorption Capital (LAC)
5. Selling Considerations

Administrative Details

Relevant Subject
Type 1 - Dealing in securities
Type 4 - Advising on securities
Type 5 - Advising on futures contracts
SFC:1.00, PWMA:1.00
All Member: HKD300
Non-Member: HKD600
Staff of Corporate Member: HKD300