Commodities and energy

The commodity derivatives market, perhaps more than any other, has suffered from new players entering the market when the going is good, then drastically scaling back when the market slows. Given the rise in oil prices and the growing interest in commodity investments from pension funds, it's perhaps unsurprising that a number of banks have once again increased investment and built up commodity teams.

This can be seen in Risk's Energy and Commodity Rankings for 2006. The giants of the commodity market – Goldman Sachs and Morgan Stanley – continue to dominate across virtually all categories, but a broader number of firms is making an appearance in the poll, in some cases for the first time in years.

Ask the newcomers about their decision to re-enter the market, and the response is invariably the same: "We're committed to the market; we're here for the long term." But it's like the Boy that