Total Return Swap Example Assume that two parties enter into a one-year total return swap in which one party receives the London Interbank Offered Rate (LIBOR) in addition to a fixed margin of 2%.

TRS allows investors to receive or pay the total return of a referenced index. These swaps enable market participants to effectively manage their risk in a cost-efficient manner minimizing ...

Leverage is back. Banks are once again pitching total return swaps (TRS) to clients. A typical structure involves a bank providing total return on a portfolio of HY corporate loans. An investor ...