EM currency notes finding buyers even after rout

European private bankers say investors are still going long emerging market currencies via structured notes, even after some of the currencies plummeted in value earlier this year

Structured notes linked to emerging market (EM) currencies are finding buyers, even as the currencies remain volatile following the rout during the second and third quarters of this year. The temptation is coming largely from attractive prices in the forwards market, sources say, as well as clients' long-term bullishness on EM economies compared to developed markets such as Europe.

Currency pairings such as the euro/Brazilian real can form the basis for "interesting" structures, says one Zurich