Banks exploit debt and equity tie-ups

Credit tech

Two investment banks have launched products that seek to unlock the investment opportunities in illiquid assets by linking equity and credit.

JPMorgan has introduced an equity default swap product. Equity default swaps are similar to credit default swaps, with the swap triggered by a fall to a particular share price rather than a default on debt. The protection buyer pays the protection seller an agreed spread until the share price falls to a predetermined level, which triggers a cash

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