Template:Synthetic equity swap - FWMD

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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