The cost of complexity

Dealers have invested heavily to create the infrastructure necessary to price customised hybrid products. But is the investment in this highly complex business worthwhile?

Specific requests from clients to their bankers are becoming more and more commonplace. The days when dealers structured investment products and then sought out client interest around the world look increasingly numbered. For example, clients might want a product that would allow them to express the view that Japanese stock prices will appreciate at the same time as the yen, or to include commodity exposures to give equity baskets a little extra zest.

"Clients are writing the payouts they want on