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[[File:Synthetic equity swap.jpg|450px|thumb|center|[[A twisty spy technique]], yesterday.]] | [[File:Synthetic equity swap.jpg|450px|thumb|center|[[A twisty spy technique]], yesterday.]] | ||
}}''Also called | }}''Also called [[synthetic equity swap]]s, [[contracts for difference]]<ref>This has been apt to confuse people; be warned.</ref> or [[high-delta equity derivative]]s.'' | ||
Why are all these things called “[[synthetic prime brokerage]]”, then? Well because economically this is ''physical'' [[prime brokerage]] — that is, equity brokerage done on [[margin lending|margin]] only done with [[swaps]] and not investments in actual shares. The client never actually owns the [[share]]: instead, his [[swap dealer]] buys it, and passes on the economic return. | |||
You may like our longer-form essay — it’s a contrarian piece, be warned — ''“[[synthetic prime brokerage and the risk of tax recharacterisation]]”''. | You may like our longer-form essay — it’s a contrarian piece, be warned — ''“[[synthetic prime brokerage and the risk of tax recharacterisation]]”''. |