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Blended equity index swap - Financial definition

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Concise definition of the term blended equity index swap

A Quanto Equity Index Swap in which there are different notional principal amounts on the two legs. The counterparty, therefore, receives a blend of the return on two equity indices.

Comprehensive definition of the term blended equity index swap

By entering into an equity swap, an investor can gain leveraged (because unfunded) exposure to all the economic risks associated with the underlying instrument, without actually acquiring the underlying itself.

Additional information related to this definition

Definitions of related terms

Equity swap  •  Swap

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