Brazilian real a popular choice for currency baskets; Barclays to offer iPath Global Carbon ETNs

By Sheri Kasprzak

New York, June 9 - Heading up structured products news to kick off the week, the Brazilian real continues to be a popular underlyer for foreign-exchange currency baskets.

In fact, the currency is so popular, RBC Capital Markets has an upcoming offering linked solely to the real versus the dollar.

"With notes like this, the question really isn't how strong the real is; it's how weak the dollar is," said one market source.

"The real is experiencing some decent strength right now, but when you compare it to weakness in the dollar, it really becomes a solid strategy."

RBC's zero-coupon principal-protected notes have a two-year term and are set to price on June 26.

The investors will receive the greater of 0% and the principal amount plus par times the percentage change in the Brazilian real times the 135% participation rate.

JPMorgan to sell three

In other news, JPMorgan Chase & Co. plans to sell three notes, all including the Brazilian real.

The offerings include a zero-coupon principal-protected note linked to the Brazilian real, the Indian rupee, the Mexican peso and the New Turkish lira, all versus the dollar. Those notes are set to price on June 17.

The notes have a two and a half-year term.

Also at JPMorgan, the bank plans to sell zero-coupon principal-protected dual directional notes linked to the real, Russian ruble, Indian rupee, Chinese renminbi and the South Korean won, all versus the dollar. Those notes are expected to price June 25.

The bank also plans to sell another 21/2-year 0% principal-protected dual directional note linked the real, ruble, rupee, renminbi and won. Those notes will also price June 25.

Banc of America to price notes

Also coming up, Banc of America Securities expected to price zero-coupon notes with a one-year term linked to the real, peso, Turkish lira and ruble, all against the dollar. The notes are expected to settle on June 27.

Lehman to sell notes

Another sale coming up connected to the real is an offering of zero-coupon enhanced participation notes from Lehman Brothers.

The Lehman notes are linked to the real, Hungarian forint, Turkish lira, Russian ruble and Indonesian rupiah. The notes are set to price June 24 and have 11/2-year term.

Citigroup's notes

Citigroup is getting in on the Brazilian real craze as well, with plans to sell zero-coupon principal-protected notes linked to the real, ruble, Norwegian krone, Indonesian rupiah and Thai baht, versus the euro as opposed to the dollar. Those bonds have a 20-month term.

The bank also has an offering of zero-coupon medium-term notes linked to the real, Australian dollar, Canadian dollar, Swiss franc and Japanese yen, all against the euro and British pound. The bonds have a one-year term.

Barclays' new iPath ETNs

In other news, Barclays Bank plc plans to sell iPath Global Carbon exchange-traded notes linked to its proprietary Barclays Capital Global Carbon Index Total Return.

The notes pay par plus the index return minus a 0.75% fee.

The bank has applied to list the notes on the New York Stock Exchange.

Neither the pricing nor the maturity dates has been set at this time.

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