CFA/EFPA (EFA/EFP/EIP) Course - Building a portfolio of certificates with periodic returns

Building a portfolio of certificates with periodic returns    --- REGISTRATION

Accredited for maintaining EFPA Level EFA/EFP/EIP certification (3 hours/credits)
Accredited CFA Society Italy* for 3 credits
Teachers: Pietro di Lorenzo and Giovanna Zanotti

1. The historical importance of periodic coupons in the portfolio of the Italian investor. Solutions realized with certificates
The Italian investor is "historically accustomed" to having bonds in his portfolio (mostly BTPs) that allowed him to have a constant coupon flow. In recent years this condition is extremely complex to structure through a traditional asset allocation. To realize it it is possible to insert in the portfolio of certificates that allow to have a periodic coupon flow.
2. Investing with zero rates: operational solutions with certificates
3. How to get returns with bond-like certificates
Yields on the bond market would require:
  • lengthen the duration excessively
  • use "low rating" issuers
  • buying bonds in exotic currencies

These solutions are all highly questionable because they significantly increase risk in the face of a modest expected return. Instead of looking for solutions with products that technically cannot perform in current markets with a risk acceptable to the average investor, it is possible to predict cash collect certificates in the portfolio.

4. How to integrate certificates into a portfolio
With reference to the core-satellite approach, next to the "hard core" of the portfolio you can expect a set of certificates that can generate a coupon flow.  Of course, the size of the satellite portfolio depends on the investor’s risk appetite and objectives.

5. How to use certificates with coupon, coupon, premiums

6. How to select the certificates best suited to your objectives

7. The construction of a diversified certificate portfolio with constant returns

8. How to optimise the risk/return ratio by analysing underlyings, volatility and correlations

9. The estimated coupon flow of a portfolio

10. Depreciation to maturity? How to use Italian tax efficiency with periodic coupons

*CFA Society Italy has determined that this program qualifies for PL credit hour(s) under the guidelines of the CFA Institute Professional Learning program. If you are a CFA Institute member, you can self report PL credit(s) for your participation accessing the PL tracking tool through your account on the CFA Institute website. One credit hour is equal to one hour (60 minutes) of educational activity.