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Equity swap

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Equity Swap
A swap in which at least one party's payments are based on the rate of return of an equity index, such as the S&P 500.

 


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In an equity swap two parties agree to exchange future cash flows linked to the performance of a stock or stock index. One cash flow, or leg, is usually linked to a market interest rate, the other to a stock or stock index performance.

EQUITY SWAP - A Swap (q.v.) in which one of the payment streams derives from an equity instrument. For ...
EQUITY TRANCHE - One name for the lowest quality (highest credit risk) tranche in a CDO structure. Some...

Debt For Equity Swap
Debt For Equity Swap definition :
A swap agreement to exchange equity/returnsfor debt returns or the converse over a prearranged length of time.
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Debt for equity swap
Definition: A mechanism where indebted LDCs swap shares in domestic firms for private foreign debt.
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Equity swap
A swap in which the cash flows that are exchanged are based on the total return on some stock
market index and an interest rate (either a fixed rate or a floating rate). Related: interest rate swap.

Equity Swap
See Swap.
Equity Trust
A form of unit trust in which unitholders' funds are invested in shares.

Debt/Equity Swap. A transaction in which a corporation exchanges newly issued stock (equity) for already existing bonds (debt).

Debt/equity swap
An exchange of debt for equity, in which a lender is given a share of ownership to replace a loan. Used as a method of resolving debt crises.

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Debt/Equity Swap
A refinancing deal in which a debt holder gets an equity position in exchange for cancellation of the debt.
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Debt-for-equity swaps are one way of dealing with sub-prime mortgages. A householder unable to service his debt on a $180k mortgage for example, ...

Debt-for-equity swap
A swap agreement to exchange equity/returns for debt returns or the converse over a prearranged length of time.

debt-equity swap A transaction where a corporation exchanges existing debt in the form of bonds... debt/asset ratio The debt/asset ratio shows how great a proportion of a company's assets are...

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Also called a debt-equity swap. Debtholder See: Bondholder Debtor Borrower of money. Debtor in possession A firm that continues to operate under the Chapter 11 bankruptcy process.

You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with associated general offer so that you get all four cows back, ...

Some examples are exchange traded funds (ETFs), stock index and stock options, equity swaps, single-stock futures, and stock index futures. These last two may be traded on futures exchanges (which are distinct from stock exchanges?

A set of transactions (also called a debt-equity swap) in which a firm buys a country's dollar bank
debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local
equity.
Depreciation ...

Engraftment An archaic practice for retiring government debt through a debt-for-equity swap.
Enron debacle In December 2001, energy trading powerhouse Enron filed for bankruptcy in the midst of an accounting scandal.

Quanto Swap - A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates.

See also troubled debt restructuring , standstill agreement , creditors' committee , debt for equity swap
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Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long-term debt by common stockholder equity.
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An event whereby a previously unsatisfied margin call is eliminated by an effective transfer of ownership. In 1998, Long Term Capital Management transfered a portion of ownership to its creditors. In some respects, it was a debt for equity swap.

See also: Expense, Floating Rate, Banks, Debt ratio, Margin call