Fiance - Swaps?
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Please can someone guide me where to get information on charcterists of Single Name Swaps and Basket Swaps.
If you know the answers please reply. I have tried several Websites but could not find an answers anywhere.
Regards
Gaurav
Answers:
A single name is a swap based on one entity and basket is a swap based on multiple entities.
Most likely you are referring to a Credit Default Swap (CDS)as they commonly use the terms "single name" and "basket" . If you don't know what a CDS is there is plenty of info online. In a single name CDS you are buying (selling) protection on a single entity, say General Motors. In a basket Swap you are buying protection on a "basket" of entities sometimes as many as 150 or as little as two. There are various types of CDS baskets as well. You have first to default and tranches just to name a couple.
If you are referring to an Equity Swap you would be swapping the performance of either a single entity (in the case of a single name) or a basket of entities (basket).
Swaps in their basic form are pretty simple but your question could refer to equity or debt so I can give you more information if you can specify what type of swap you are enquiring about.
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