Wachovia prices $6.877 million in notes linked to emerging markets currencies

By Sheri Kasprzak

New York, Sept. 4 - Wachovia Capital Markets, LLC led structured products news on Tuesday after the structured products market got back to work following the Labor Day weekend, acting as agent on two deals for Eksportfinans ASA.

"There has been lower volatility in the emerging markets currencies, for the most part, at least compared to the volatility in the U.S. market," said one market insider. "Investors here are more likely to invest in the foreign markets given the troubles we've been having here."

Tim Mortimer, managing director with Future Value Consultants, a London-based firm that analyzes derivatives products, said recently that similar notes, linked to a variety of Asian currencies, are also a product of decreased volatility in emerging markets currencies.

Those offerings come from Barclays Bank plc and include 95% principal-protected notes linked to the Chinese yuan, Indian rupee, Thai baht and Korean won, and 100% principal-protected notes linked to the yuan, rupee, Indonesian rupiah, Japanese yen and Malaysian ringgit.

Eksportfinans linked to real, peso, others

The Eksportfinans notes are linked to the Brazilian real, the Mexican peso, the Turkish lira, the Hungarian forint, the Indonesian rupiah and the Indian rupee.

The 100% principal-protected notes have an 18-month term and pay par plus the basket performance amount.

If the basket return is positive, the payout at maturity will be 109.5% of par plus 400% of any amount by which the basket return exceeds 9.5%.

If the final basket level is greater than the initial level, investors will receive at least 109.5% of par.

If the basket return is negative, the payout will be par.

Deutsche Bank's municipal notes

In other structured products news, Deutsche Bank AG, London Branch announced the pricing terms of $10 million in 10-year Range Accrual Municipal Index Notes.

The notes are fully principal-protected and pay interest semi-annually at a yearly rate equal to the base rate of 9.5% times the proportion of days on which either Libor is less than or equal to 3.35% or the average weekly ratios of the Sifma index is less than or equal to 70%.

The notes pay par at maturity plus any accrued interest.

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