Equity Swaps: Risks and Variations
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Equity Swaps: Risks and Variations

Intuition Publishing
Updated Sep 24, 2020

Equity swap transactions come with counterparty credit risk, and we outline some ways of reducing this risk. We then look at some variations on the plain vanilla equity swap such as a relative performance swap, a capped/floored equity swap, a blended equity swap, a rainbow equity swap, and a two-index equity swap.