Aqueous polymer composition and method of preparing thereof

An aqueous polymer composition comprising,

• (A) an emulsion polymer comprising, based on the weight of the emulsion polymer,
• from 5% to 28% by weight of structural units of a cycloalkyl (meth) acrylate,
• from 0.1% to 10% by weight of structural units of an acetoacetoxy or acetoacetamide functional monomer,
• from 0.05% to 10% by weight of structural units of a phosphorous acid monomer, a salt thereof, or mixtures thereof,
• from zero to 10% by weight of an additional ethylenically unsaturated acid monomer, and
• structural units of an additional ethylenically unsaturated nonionic monomer;
• and
• (B) from 0.7% to 7.8% by dry weight of a waterborne resin comprising at least one fatty acid ester segment and having a number average molecular weight of 20,000 grams per mole or less, based on the total dry weight of the emulsion polymer and the waterborne resin.