Abstract: Protective and decorative coatings for metal are prepared using aqueous polymer compositions consisting essentially of a thermosetting vinyl or acrylic polymer which has been polymerized in the presence of a preformed, crosslinked, elastomeric copolymer. The rate at which the monomers of the thermosetting polymer are added to the reaction mixture is substantially equal to the rate of reaction of these monomers to form the thermosetting polymer. This is believed to result in the formation of minute emulsified particles containing a core of the elastomeric copolymer surrounded by a layer of the thermosetting polymer. The thermosetting polymer contains pendant hydroxyl groups and a latent, heat-activated crosslinking agent.