Equity Swap

This Issue in United States

Equity Swap

Concept of Equity Swap in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A derivative (i.e. an instrument that transfers risk from one party to the other) contract where payments are linked to the change in value of an underlying equity, basket of equities or index. The equity return payer pays to the equity return receiver any increase in the value of the underlying plus any dividends received. The equity return receiver pays the equity return payer any decrease in the value of the underlying plus funding cost.

Resources

See Also

• Derivatives Contract