"This is obviously impacting the supply of structured EMTNs because banks and SSAs were among the largest issuers. Amaury Gossé, director of MTNs at Citi in London, agrees: Generally I do not believe we will see exotic structures or exotic payoffs, as we had before the crisis, coming back in the near future. Those days are gone. Structured EMTNs only comprise 10% to 15% of the entire EMTN market, but such trades were often lucrative business for investment banks.
What we have seen in the structured world is more and more index-linked trades being done. Gossé continues: so instead of having a structured coupon, you would have a normal structured note that pays a fixed-rate coupon and at maturity pays the best performance of an index. So now the innovation is not really in the payoff but in the underlying, and thats a growing trend.