The commodity wizards that generated a slew of new products in the past year must be feeling just a touch restless these days. Although banks continue to gear up for growth, specialists who conjure the latest indices and other products to feed commodities-hungry clients have been idling of late. The threat of new, stricter regulations has cast a winter chill on innovation, with bankers mulling adaptation to a new landscape.
"New products have been very busy this past year, but more recently we've put the brakes on because a lot of clients are sitting on the sidelines, not clear about what is happening to all these products because of pending regulations, says Francisco Blanch, head of global commodity research at Banc of America Securities-Merrill Lynch.
