US Wrap: Morgan Stanley offers Brazil through Exportfinans

Morgan Stanley has launched a new note offering exposure to the iShares MSCI Brazil Index fund. The external credit of Eksportfinans has been used to package the six-month trade, which gives an annualised coupon of 11-15% provided that the fund stays above 75% of its initial level. If it falls below this barrier and does not recover to 100% of its initial value by maturity, principal loss will be 1:1.

ABN Amro took a more unusual fund exposure approach, structuring a reverse convertible on T Rowe Price stock, which is a fund provider. Another six-month play with a 75% barrier, it pays a coupon of 13.5% annualised.

The rest of the exposure was focused on the S&P 500, which was the basis of two accelerated growth products and one principal protected note. The cautious note was offered by Goldman Sachs and lasts two-and-a-half years, protecting 80% of capital. Returns are capped at between 51-60