A combination of an equity swap and an asset swap whereby one party pays the returns generated by a specific pool of assets (such as bonds, real estate, etc), and receives the rate of return on a given equity index such as the S&P500, and similar stock market indices, domestic or foreign. This swap belongs to the class the dual leg swap structure, as it is typically offset with a financing leg (as represented by a swap floating leg or swap fixed leg). The asset leg is based on the underlying asset, with an independent rate of growth and a periodic cash flow schedule. As such, its cash flows are based on projected growth of the underlying asset.

This swap is also known as an equity asset swap.