| Banks are struggling to devise new commodity index products as once-fat returns fizzle out in a business worth $140 billion, putting pressure on bank commodity businesses already hit by tighter regulations.
Up until this year, the banks had managed to come up with fresh ways of perking up returns for the index products and retain uneasy investors, who still see commodities as a bet against inflation. As a flood of money into the sector has diluted returns, however, now even many of the complex products spiced up with computer algorithms are underperforming, and some investors are questioning their commitments to the sector...............................................Full Article: Source
|