Equity Swaps: Applications
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Equity Swaps: Applications

Intuition Publishing
Updated Sep 24, 2020

Equity swaps can be a very useful financial product, especially for large financial institutions looking to diversify, hedge positions, or gain tax benefits. We take two examples of an equity swap, and use them to demonstrate the roles of the equity receiver and equity payer in the transaction. Then we conclude with a discussion of some of the advantages equity swaps can give to participants on both sides of the swap transaction.