Avoiding complexity

The structured products market has evolved rapidly, but Sung Cheng Chih of the GIC thinks that technology may be moving a little too fast for some investors. By Nick Sawyer

The name of the game for investment managers over the past few years has been how to generate yield. It's not been easy. Equity markets have been shaky, interest rates have been low and – until the recent downgrade of General Motors and Ford – credit spreads have been locked at tight levels.

As spreads have tightened and equity volatilities plummeted, an array of new products have emerged aimed at giving investors an extra yield kick. In the credit world, for instance, technology has evolved from