An Introduction to Equity Swaps

What is an Equity Swap? A swap is a financial contract that involves two counterparties exchanging cash flows over a regular period. An equity swap is a swap in which at least one of the cash flows is based on the performance of a stock or index (Chase, 2004; Cont, 2010; Faboozzi, 2008). One counterparty … Continue reading An Introduction to Equity Swaps