Template:Synthetic equity swap - FWMD: Difference between revisions

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{{fwmdtt|nickname=Synthetic equity swap| imagetype=jpg| tagline= All the pleasure of ownership; none of the responsiblity!| documentation= {{isdama}}, {{eqdefs}} and a master confirmation. Call the [[legal eagles]]!| docscore=8| amendability= Bilateral, so doable, but delta-one, so not much to amend.|amendscore=3| collateral= [[Regulatory margin|Reg VM]] and flexible [[IM]] margined daily. Nothing to see here folks.| collateralscore =0| transferability= Daily liquidity, so no real need.| transferscore =3| leverage= A form of synthetic margin lending so yes. But your PB will be all over you, so no.| leveragescore =5| frightometer= Margin lending through swaps. Sounds scary; isn’t really. Consolation points for [[tedious]] [[negotiation]] process.| frightscore=4}}
{{fwmdtt|nickname=Synthetic equity swap| imagetype=jpg
|tagline= All the pleasure of ownership; none of the responsiblity!| documentation= {{isdama}}, {{eqdefs}} and a master confirmation. Call the [[legal eagles]]!
| docscore=8
| amendability= Bilateral, so doable, but delta-one, so not much to amend.|amendscore=3
| collateral= [[Regulatory margin|Reg VM]] and [[IM]] margined daily. If you are on dynamic margining, not much to see here. If you aren’t, ''armageddon''.
| collateralscore = 4| transferability= Daily liquidity, so no real need.| transferscore =3| leverage= A form of synthetic margin lending so yes. But your PB will — ''should'' —be all over you, so no.| leveragescore =5| frightometer= Until 27 March  2021, about 3. But since then, beset with evil spirits, succubi and incubi, and [[Archegos|The Family Office Who Must Not Be Named]]| frightscore=10}}

Revision as of 09:31, 16 August 2021

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Synthetic equity swap.jpg


Synthetic equity swap


All the pleasure of ownership; none of the responsiblity!


Docs ISDA Master Agreement, 2002 ISDA Equity Derivatives Definitions and a master confirmation. Call the legal eagles! 8
Amendability Bilateral, so doable, but delta-one, so not much to amend. 3
Collateral Reg VM and IM margined daily. If you are on dynamic margining, not much to see here. If you aren’t, armageddon. 4
Transferability Daily liquidity, so no real need. 3
Leverage A form of synthetic margin lending so yes. But your PB will — should —be all over you, so no. 5
Fright-o-meter Until 27 March 2021, about 3. But since then, beset with evil spirits, succubi and incubi, and The Family Office Who Must Not Be Named 10