Islamic Finance
Ahliyyat al-Wujub Al-Naqisah
November 23, 2021
Islamic Finance
Ahliyyat al-Wujub Al-Kamilah
November 23, 2021

It stands for quanto equity swap; a swap that pays the return on a foreign equity investment (like a share of stock) against payment based on a domestic floating rate. In other words, in this swap one party pays the domestic floating interest rate and receives the foreign stock return denominated in foreign currency but paid in domestic currency.

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