Where You Already Own Swaps

You almost certainly have swap exposure without having signed an ISDA agreement:

Leveraged and inverse ETFs

Products such as SPXU deliver their daily multiple largely through total return swaps with bank counterparties, not through futures alone. The prospectus discloses the counterparties; the credit exposure is real but collateralized daily.

Structured notes

A bank’s note wrapped around a derivative payoff is a swap in a bond costume, with the issuer’s credit risk attached. section “Structured Products and Market-Linked Notes” is blunt about why you should generally decline them.

Defined-benefit pensions and insurers

The entity promising you a stream of payments is hedging its liability with swaps. When you evaluate a pension’s funded status or an insurer’s guarantee, you are implicitly evaluating a swap book.