What are the stock swap data and how should I adjust for stock swaps?
The TIC Form S gathers data, primarily from securities brokers and dealers, on cross-border purchases, sales, and redemptions of long-term securities. However, TIC S-reporters do not have the information to report acquisitions of equities through merger-related stock swaps; that is, the cross-border exchange of equity that frequently is part of the financing of cross-border mergers and acquisitions. Use of the TIC Form S data without considering the effect of stock swaps may lead to a significant underestimate of cross-border equity flows. To assist TIC users, the Federal Reserve Board has estimated monthly stock swaps from January 2000 forward.
