The structured products business has, over the past decade, occasionally resembled an arms race. Equity derivatives desks have rushed to hire the best quantitative experts, able to put together ever more sophisticated, mathematically complex payouts. As sales grew, marketing of products increasingly focused on the next great payout, inevitably a step-up in complexity on what had gone before.
The market is changing, however. Dealers are now moving away from complex payouts in favour of compelling