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The attractions of commodities for investment banks are, at first glance at least, obvious

The attractions of commodities for investment banks are, at first glance at least, obvious. First, the trading of physical commodities and flow commodity derivatives offers a high return on equity, hitting 20%, according to consulting firm McKinsey.

Deutsche Bank said in a presentation last year that its commodities business had the potential to deliver a 40% return on equity in 2013.

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