Primary Markets Certificate

• Understand what is involved with syndication and origination.
• Review pricing decisions and launch requirements.
• Assess current liability management techniques, their applicability and outcomes.
• Explore events of default, debt ranking and covenants.

Sources of Finance

• Financing choices
• Cost of equity and debt
• Weighted Average Cost Of Capital
• Financial leverage
• Purpose of funding
• Market conditions

Use of Proceeds / Borrowers

• Use of Proceeds / Borrowers
• Loans v. bonds
• Corporates – IG / High Yield
• SSAs – Sovereigns / Supranationals / Agencies
• FIs - Capital adequacy / Basel 3
• Minimum capital and buffers Leverage Ratio / LCR & NSFR
• Common equity Tier 1 / Additional Tier 1 / Tier 2

Credit Overview

• Credit Ratings Overview
• Basic Corporate Credit Analysis
• Credit rating process
• Credit Rating Agencies various approaches
• Calibrating the business profile
• Assessing the financial risk profile
• CRA Regulation

Investment Grade Markets

• Introduction to the IG market
• Funding Programmes
• Sovereign case studies

High Yield / Sub-IG

• Introduction to HY / non-IG, understanding the difference
• Review of Covenants

Bond Types

• Domestic, Foreign & Eurobond
• Development of the cross-border market
• International bonds
• Public or private
• Floating Rate Notes / Fixed Rate
• Medium Term Notes

Investor Protection

• Events of Default
• Debt Ranking
• Hybrid Capital / Debt / Equity Continuum
• Covenants
• Force Majeure
• Tax Gross Up / Redemption

Selling Restrictions & US Regs

• Selling restrictions
• Regulation S
• Rule 144A
• 10b 5 Due Diligence
• TEFRA C & D
• FATCA

Legal & Documentation

• Overview of New Issue timetable
• Underwriting risk - reps & warranties, DD, Legal opinions, Comfort letters, Conditions precedent, Force Majeure
• Product Governance (MiFIDII/IR)
• Obligations for Manufacturers & Distributers
• ICMA 1 & ICMA 2
• The Due Diligence process
• EEA Prospectus Regulation/Directive
• The passport
• Disclosure & listing - Who discloses and what? / Relevant
• Investment risk - Events of default / Cross default / Tax gross up & call / Negative pledge / Event risk covenant

Securitisation

• Definitions
• The Collateral Pool
• Role of Seller, Servicer and SPV
• Capital Structure
• CDOs
• Why Securitise?
• MBS
• Credit Cards & other types of asset-backed
• Securitisation since the crisis
• EU Regulation of asset-backed
• ECB Loan Level Initiative
• Capital Markets Union (CMU) and the STS initiative
• STS Requirements
• Homogenous
• Historical performance data
• Risk retention

Covered Bonds

• Definitions / Key features
• Types of covered bonds
• Covered bond ratings
• Legal Frameworks
• EU Covered Bond Directive / Developing a harmonised EU framework
• Regulatory treatment
• Recent structural developments

Hybrid Capital

• Uses and benefits
• Regulatory developments
• More Capital of higher quality
• SREP
• Components of capital structure
• PONV
• MREL
• AT1 and T2 under Basel 3
• BRRD and the ‘Bail in’ regime

Liability Management

• Rationale
• Bond buybacks
• Tender offers
• Exchanges
• Consent solicitations
• Regulatory considerations

Deal Process

• Pre-Mandate
• Pre-Marketing
• Marketing
• Bookbuilding
• Pricing
• Swaps
• Post-Pricing

Documentation & Closing

• Confirmation to Managers
• Subscription Agreement
• Selling Group Agreement
• Trustee / Fiscal agent
• Listing
• Signing

Clearing & Settlement

• Introduction to CSDs and ICSDs
• Range of securities and currencies
• Functions of the ICSDs
• New Issues Acceptance
• ISINs
• New Issues Distribution / Syndicated / Non-Syndicated
• Role of the Common Depository
• Eurosystem Collateral Eligibility

Residual Regulation