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Starweaver Instructor Team and Paul Siegel

This course will give you a broad overview of this rapidly-evolving section of the derivatives markets. Swaps in general will be introduced, and then the course will segue into an introduction to equity swaps, look at the various details of the contracts, the applications that market participants use them for, as well as pricing and valuation issues.

This course contains 18 lectures divided into5 sections, including: 

Read more

This course will give you a broad overview of this rapidly-evolving section of the derivatives markets. Swaps in general will be introduced, and then the course will segue into an introduction to equity swaps, look at the various details of the contracts, the applications that market participants use them for, as well as pricing and valuation issues.

This course contains 18 lectures divided into5 sections, including: 

  • Introduction to Equity Swaps

  • Equity Swap Contracts

  • OTC Clearinghouses

  • Equity Swap Structures and Applications

  • Variance Swaps

More about this course and Starweaver

This course is led by a seasoned capital markets industry practitioner and executive with many years of hands-on, in-the-trenches financial markets sales, trading and analysis work. It has been designed, produced and delivered by Starweaver. Starweaver is one of the most highly regarded, well-established training providers in the World, providing training courses to many of the leading financial institutions and technology companies, including:

Ahli United Bank; Mashreqbank; American Express; ANZ Bank; ATT; Banco Votorantim; Bank of America; Bank of America Global Markets; Bank of America Private Bank; Barclay Bank; BMO Financial Group; BMO Financial Services; BNP Paribas; Boeing; Cigna; Citibank; Cognizant; Commerzbank; Credit Lyonnais/Calyon; Electrosonic; Farm Credit Administration; Fifth Third Bank; GENPACT; GEP Software; GLG Group; Hartford; HCL; HCL; Helaba; HSBC; HSBC Corporate Bank; HSBC India; HSBC Private Bank; Legal & General; National Australia Bank; Nomura Securities; PNC Financial Services Group; Quintiles; RAK Bank; Regions Bank; Royal Bank of Canada; Royal Bank of Scotland; Santander Corporate Bank; Tata Consultancy Services; Union Bank; ValueMomentum; Wells Fargo; Wells Fargo India Solutions; Westpac Corporate Bank; Wipro; and, many others.

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What's inside

Learning objectives

  • Understand what equity swaps are all about and how / why they exist
  • Describe the features and functions of equity swaps, and how they operate in the financial markets
  • Determine pricing and valuation issues of equity swaps
  • Evaluate various swap structures and variances
  • Apply portfolio diversification using swaps to mitigate or take financial risk
  • Explain how equity swaps, rainbow swaps and variance swaps operate

Syllabus

Introduction to Equity Swaps

Just a brief "hello" and explanation for you.

In this module, you will learn about financial swaps and how they are used to transfer risk between parties. Topics covered include swap structures, types of swaps, and the role of swaps in financial markets.

Read more

In this module, you will learn about equity swaps and how they are used to transfer equity exposure between parties. Topics covered include equity swap structures, types of equity swaps, and the role of equity swaps in financial markets.

This module covers the potential advantages of using equity swaps compared to other financial instruments. Topics include the benefits of using equity swaps for portfolio management, risk management, and financing purposes.

In this module, you will learn about the key contract terms and features of equity swaps. Topics covered include settlement provisions, termination events, and pricing considerations.

This module covers the various exposures created by equity swaps and how they can be managed. Topics include the economic and accounting implications of equity swaps, as well as strategies for mitigating risk.

In this module, you will learn how to create an equity swap contract illustration using real-world examples. Topics covered include calculating swap cash flows, determining net asset values, and analyzing potential outcomes.

In this module, you will learn how to create an equity swap contract illustration using real-world examples and how to determine the economic equivalents of the swap. Topics covered include calculating swap cash flows, determining net asset values, and analyzing potential outcomes.

This module covers the differences between swaps and economic equivalents and the role of OTC clearinghouses in the financial markets. Topics include the benefits and risks of using OTC clearinghouses and how they facilitate the clearing and settlement of swaps.

This module covers the differences between swaps that are cleared through an OTC clearinghouse and those that are not. Topics include the benefits and risks of using cleared swaps, as well as the impact on counterparty risk and market transparency.

In this module, you will learn about the processes and procedures involved in OTC clearinghouses. Topics covered include the role of clearing members, margining, and default management.

This module covers the various equity swap structures that exist and the factors that impact their pricing and valuation. Topics include the use of financial modeling, the role of market conditions, and the impact of credit risk.

In this module, you will learn about the factors that impact the pricing of swaps and how to manage risk when using swaps. Topics covered include the use of financial modeling, early termination provisions, and strategies for mitigating risk.

This module covers the use of equity swaps for tactical asset allocation and portfolio management. Topics include the role of equity swaps in implementing investment strategies, the use of financial modeling, and the impact of market conditions.

In this module, you will learn how to use equity swaps to implement international diversification strategies. Topics covered include the role of equity swaps in accessing global markets, the use of financial modeling, and the impact of currency risk.

This module covers the use of equity swaps for diversifying concentrated portfolios. Topics include the role of equity swaps in reducing portfolio risk, the use of financial modeling, and strategies for mitigating concentration risk.

In this module, you will learn about rainbow swaps and variance swaps, which are specialized equity swaps used for managing risk and implementing investment strategies. Topics covered include the structure and pricing of these swaps, as well as their potential uses and risks.

This module covers the basics of variance swaps, including their structure and key contract terms. Topics include the use of variance swaps for managing risk, the role of financial modeling, and the impact of market conditions.

Instructor Doug Carroll discusses variance swap gains and losses, and applications of variance swaps, and concludes the course.

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
This course provides a structured approach to learning about Equity Swaps and how they operate in financial markets
Suitable for beginners looking to gain understanding of Equity Swaps
Explores the use of Equity Swaps in tactical asset allocation and portfolio management
Provides insights into using Equity Swaps for risk management and implementing investment strategies
Covers the role of OTC clearinghouses in facilitating the clearing and settlement of swaps
May be less relevant for experienced professionals seeking advanced knowledge or certifications in Equity Swaps

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Reviews summary

Equity swaps: deep dive for professionals

According to students, "Deep Dive Into Equity Swaps" is a highly valuable course for finance professionals, widely praised for its instructor's deep knowledge and strong focus on real-world examples and practical applications. Learners particularly appreciate the logical structure, which aids in clarifying complex topics such as equity swap contracts, OTC clearinghouses, and variance swaps. While many find it a comprehensive and thorough examination of the subject, some learners indicate that the pace can be fast and that it assumes prior financial knowledge. There is a slight divergence of opinion on whether it consistently delivers a truly "deep dive" for all, depending on individual background, but recent feedback suggests continued high quality and relevance.
Learners' opinions vary on the course's alignment with its 'deep dive' title.
"This course exceeded my expectations, providing a true deep dive highly recommended for finance professionals."
"The course provides a good introduction, but for a 'deep dive,' I expected more. Some areas... felt a little light."
"While it offers a solid foundation, I wouldn't call it a 'deep dive' for everyone; it may require additional self-study."
Logical organization and quizzes effectively aid in learning.
"The course flows logically, building knowledge step by step, which made it easier to follow."
"The material is dense but well-organized, and the quizzes helped reinforce my learning significantly."
"I found the course structure logical and the topics highly relevant, making it an excellent learning experience."
Offers thorough coverage of key equity swap concepts and related instruments.
"It's a very thorough look into equity swap structures and applications, covering a lot of ground effectively."
"I found the sections on equity swap contracts and their economic equivalents to be very clear and comprehensive."
"The segment on rainbow swaps and variance swaps was especially insightful and added significant value."
Course provides valuable, real-world insights and actionable strategies.
"I particularly appreciated the real-world examples and how they clarified complex concepts."
"This course provided practical insights that I could immediately apply, especially for portfolio diversification using swaps."
"The focus on applications rather than just theory was a major plus for me."
Instructor's deep knowledge enhances understanding of complex topics.
"The instructor's deep knowledge of equity swaps, especially in the valuation issues and OTC clearinghouses, was evident."
"Absolutely brilliant! The instructor is a true expert, making even the trickiest topics like variance swaps understandable."
"While the instructor's expertise is undeniable, the delivery sometimes lacked clarity for intermediate learners."
Course pace can be fast, making prior financial knowledge beneficial.
"Some parts felt a bit fast-paced, suggesting it's best for those with some prior financial derivatives background."
"I found this course challenging to follow; the pace was inconsistent and it assumed more prior knowledge than advertised."
"Certain explanations felt rushed, and I believe the lecture content could benefit from more detailed examples."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Deep Dive Into Equity Swaps with these activities:
Review prerequisites - Functions in C++
Functions are covered in-depth during this course. It is therefore very beneficial to explore any resources that allow you to brush up on any previous knowledge you may have on this subject.
Browse courses on Functions
Show steps
  • Review documentation, tutorials, or books on functions in C++
  • Practice writing simple functions in a development environment
  • Complete practice problems or exercises on functions
Solve daily coding challenges
Solving coding challenges reinforces the problem-solving techniques taught in the course and helps improve your coding skills in C++.
Browse courses on Problem Solving
Show steps
  • Choose an online coding challenge platform or website
  • Select a challenge and read the problem statement carefully
  • Implement your solution in C++
  • Test and debug your code
  • Review solutions and discuss with peers or mentors
Read 'Effective Modern C++' by Scott Meyers
This book provides in-depth insights into modern C++ programming practices and design principles, complementing the topics covered in the course.
Show steps
  • Read the book thoroughly, focusing on the sections relevant to the course
  • Take notes and highlight important concepts
  • Complete the exercises and examples provided in the book
Four other activities
Expand to see all activities and additional details
Show all seven activities
Develop a small C++ project
Building a project allows you to apply the concepts learned in the course and gain hands-on experience in software development.
Show steps
  • Identify a project idea that interests you and aligns with the course topics
  • Plan and design the project, including its architecture and functionality
  • Implement the project in C++, following coding best practices
  • Test and debug your code
  • Document your code and write a README file explaining the project
Participate in online coding competitions
Participating in coding competitions challenges you to solve problems efficiently and improve your competitive programming skills.
Show steps
  • Choose a coding competition platform or website
  • Select a competition and read the problem statements carefully
  • Develop and submit your solutions within the specified time limit
  • Analyze your performance and identify areas for improvement
Mentor junior programmers or students
Mentoring others reinforces your understanding of C++ concepts and helps develop your communication and leadership skills.
Show steps
  • Identify opportunities to mentor others, such as through online forums or local programming groups
  • Provide guidance and support to junior programmers or students seeking to improve their C++ skills
  • Share your knowledge and experience, and encourage them to ask questions
  • Provide constructive feedback and help them overcome challenges
Contribute to open-source C++ projects
Contributing to open-source projects allows you to collaborate with others, learn from experienced developers, and enhance your understanding of real-world C++ development.
Show steps
  • Identify open-source C++ projects that align with your interests and skills
  • Review the project documentation and contribute documentation or code improvements
  • Participate in discussions and collaborate with other contributors
  • Submit bug reports and feature requests

Career center

Learners who complete Deep Dive Into Equity Swaps will develop knowledge and skills that may be useful to these careers:

Reading list

We've selected 50 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Deep Dive Into Equity Swaps.
This handbook provides in-depth coverage of the strategies, pricing, and risk management of equity swaps. It valuable resource for professionals who are involved in the development, structuring, and execution of these instruments.
Is widely considered a foundational text in financial modeling, often used in university settings. It provides a comprehensive overview of financial modeling principles and applications using Excel. It is highly valuable for building a solid understanding of core concepts and is an excellent reference tool.
Offers an authoritative treatment of equity derivatives and risk management, including a detailed discussion of equity swaps. It must-read for anyone who is serious about understanding the use of these instruments in the modern financial markets.
Aswath Damodaran renowned expert in valuation, and this book comprehensive guide to various valuation models and techniques. It's an invaluable resource for anyone building financial models for valuation purposes, providing deep insights into the drivers of value.
A widely used textbook in academic settings and by professionals, this book provides a thorough understanding of financial risk and the regulation of financial institutions. It covers various types of risk, their appearance in different institutions, and the impact of regulatory structures on risk management practices. is essential for gaining a solid foundation in the field.
Provides a comprehensive overview of equity swaps. It covers the basics of how these products work, the different types of products available, and the risks and rewards involved. It great resource for anyone who wants to learn more about this complex financial instrument.
Provides a comprehensive overview of equity swaps. It covers the basics of how these products work, the different types of products available, and the risks and rewards involved. It great resource for anyone who wants to learn more about this complex financial instrument.
Provides a practical guide to portfolio optimization. It covers a wide range of topics, including asset allocation, risk management, and performance evaluation. The authors, John Campbell and Luis Viceira, are both leading experts in the field of portfolio optimization.
Provides a comprehensive overview of equity swaps. It covers the basics of how these products work, the different types of products available, and the risks and rewards involved. It great resource for anyone who wants to learn more about this complex financial instrument.
This McKinsey & Company classic focuses on valuation principles, which are integral to financial modeling. It provides a rigorous framework for valuing companies and understanding the drivers of value. It key resource for anyone involved in corporate finance and valuation.
This handbook offers a comprehensive overview of financial risk management, covering a wide range of topics and techniques. It valuable reference for both practitioners and academics, providing in-depth coverage of various risk types and management approaches. While extensive, it serves as an excellent resource for exploring different areas of financial risk.
Focuses on the 'engineering' aspects of financial engineering, explaining how to use financial tools to achieve specific goals, particularly in risk management. It delves into the creation and interaction of financial instruments and can be used to solve problems in risk management and pricing. It is highly recommended for graduate students and professionals in financial engineering and quantitative finance.
Provides a comprehensive guide to financial modeling in both corporate and project finance contexts. It includes case studies and practical exercises, making it valuable for those focusing on project finance modeling. It covers complex topics with a clear approach.
A practical guide specifically focused on financial modeling for project finance. It covers the unique aspects of modeling for large-scale projects and funding strategies. It valuable resource for those working in project finance.
Focuses on mastering financial modeling specifically within the Excel environment. It covers various techniques and best practices for building effective models. It valuable resource for those who rely heavily on Excel for their financial analysis.
Delves into the principles behind financial modeling, emphasizing data structure, layout optimization, and model auditing. It's a comprehensive resource for understanding the best practices in financial model development.
Provides a comprehensive guide to building and maintaining an enterprise risk management (ERM) framework in financial institutions. It covers qualitative and quantitative techniques for identifying, modeling, and measuring risks, and discusses relevant regulatory frameworks like Solvency II and Basel III. It valuable resource for practitioners and students focusing on ERM.
Combines financial analysis and modeling with the use of Excel and VBA. It's suitable for those who want to leverage the power of VBA for more advanced modeling and automation. It bridges the gap between theoretical concepts and practical implementation in Excel.
Comprehensive reference on derivatives and covers topics such as derivative markets, derivative products, and derivative risk management.
Provides a comprehensive overview of the volatility surface, including a discussion of its application to equity swaps. It valuable resource for practitioners who are seeking to gain a deeper understanding of the use of volatility in the pricing and risk management of these instruments.
Strikes a balance between the theory and practice of financial modeling, offering a comprehensive guide to various modeling techniques. It's suitable for those seeking a deeper understanding of the theoretical underpinnings and practical applications.
An excellent starting point for beginners, this book introduces financial modeling concepts using Microsoft Excel. It's highly practical with hands-on exercises, making complex topics accessible. It is particularly useful for those with limited prior finance or Excel experience.
A practical guide to using Excel for a wide range of business and financial modeling applications. It provides step-by-step instructions and is suitable for those who want to enhance their Excel modeling skills for business analysis.
A concise and practical introduction to financial modeling in Excel, focusing on core concepts and structures. It's suitable for beginners and those looking for a focused guide on essential modeling techniques in Excel.
Focuses specifically on liquidity risk, offering best practices in measurement and management from experienced practitioners. It provides insights into tools and techniques for managing bank liquidity risk, including stress testing and contingency planning. It valuable reference for those specializing in or seeking to deepen their understanding of liquidity risk.
Offers a hands-on approach to financial modeling using the latest version of Excel (Microsoft 365). It covers building practical models for forecasting, valuation, and analysis. It's relevant for those using current Excel software.
Offers a hands-on approach to long-term financial forecasting and analysis, with an emphasis on incorporating uncertainty. It's valuable for those involved in strategic planning and forecasting. It provides a framework for building robust forecasting models.
Explores the fundamentals and applications of artificial intelligence in finance, a contemporary and rapidly evolving area. While not exclusively about risk management, AI is increasingly being used in risk modeling and analysis. This book provides valuable context for understanding how technology is shaping the future of financial risk management.
Building on the themes of 'Fooled by Randomness,' this book focuses on the impact of rare and unpredictable events (black swans) in finance and other domains. It highlights the vulnerability of systems to extreme events and the limitations of forecasting. is crucial for understanding contemporary discussions in financial risk management, particularly concerning tail risk.
Focusing specifically on operational risk, this book provides a detailed examination of how to measure and manage this crucial type of risk in financial institutions. It specialized resource for those interested in the non-financial risks faced by organizations. It can be used to deepen understanding of a specific risk category.
This book, compiled by the CFA Institute, offers key readings on risk management from leading practitioners and academics. It provides a solid framework for understanding the theory, philosophy, and evolution of risk management. It valuable resource for gaining diverse perspectives on the field.
Comprehensive reference on alternative investments and covers topics such as alternative investment markets, alternative investment products, and alternative investment risk management.
Tailored for business owners and entrepreneurs, this book connects financial modeling with business planning and decision-making. It provides practical methods for building models relevant to startups and small businesses. It's a great resource for those in entrepreneurial roles.
Offers a practical introduction to risk management, suitable for those new to the field. It avoids overly intricate formulas and mathematical details, focusing on the essential concepts of market, credit, and operational risk. It is valuable for providing a broad understanding and learning from past financial crises like the 2008 Great Financial Crisis.
Provides a comprehensive overview of financial derivatives, including a discussion of equity swaps. It valuable resource for students and practitioners who are seeking to gain a deeper understanding of the use of these instruments in the financial markets.
Provides a comprehensive overview of real estate investment. It is suitable for advanced students and practitioners.
This textbook provides a comprehensive overview of investment management. It is suitable for advanced students and practitioners.
Is an essential desk reference for FP&A professionals, covering budgeting, forecasting, and financial communication. While not solely focused on modeling, it provides crucial context and applications for financial models in FP&A.
Provides a practical, hands-on approach to credit risk modeling using Excel and VBA. It covers various methodologies for estimating default probability and analyzing credit portfolios, with step-by-step implementation guides. It is particularly useful for those who want to apply theoretical concepts using widely available tools.
Strikes a balance between the theoretical and practical aspects of financial risk management. It explains how to understand and control the severity and frequency of losses, combining quantitative approaches with practical insights. It good resource for gaining a solid understanding of both the 'why' and 'how' of risk management.
Provides a fundamental understanding of financial risk management, covering nine distinct types of financial and non-financial risks. It focuses on identifying, understanding risk patterns, and implementing mitigation practices. It is suitable for anyone seeking foundational knowledge in financial risk management.

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