Total Return Swap

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Total Return Swap

A swap in which the two legs are an interest rate, whether fixed or floating, and the return on a set asset. The second party owns the asset, which is usually a set of loans, bonds, or an equity index. The advantage to a total return swap for the payer of the interest rate is that it allows him/her to benefit from the ownership of the asset without owning it. However, if the asset falls in price over the life of the swap, the payer of the interest rate is required to compensate the owner of the asset for the amount the asset has lost.
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Julia focuses her derivatives practice on total return swaps, credit default swaps, credit- and equity-linked notes, equity swaps and options, and other derivatives transactions, and the application of the new U.
Julia Lu, Partner, Richards Kibbe & Orbe LLP to Speak at the KC's event
For several years, the CMA has permitted foreign access to listed shares through the use of total return swaps.
QFII Rules: Public consultation on direct foreign ownership
Head of EFS Sales, Americas, Johnny Wu, commented "As with all of our investable index products, Barclays will make the Women in Leadership index available via several investable formats, including total return swaps and structured notes as well as the ETNs.
Women in Leadership Index and ETNs launched by Barclays
It provides a front to back office solution for change transactions counting Contracts for Difference (CFDs), Total Return Swaps (TRS) and Portfolio Swaps over a range of underlying assets including Equities, Futures, Bonds, Index/Sector Indices and Custom Baskets on a single or cross-currency basis.
United Kingdom : NEW synthetic finance software launched by 4sight
Foreign investors have been able to buy Saudi shares indirectly by means of total return swaps via licensed brokers up to now.
Sukuk can foster economic development in Saudi Arabia
Others included are Dr Hamid Hassan and Dr Daud Bakar, while there is a contribution from Sheikh Talal de Lorenzo in a case study on total return swaps and Shari'ah conversion strategy.
Islamic capital common sense
In the UK absolute funds are regulated by the FSA, have limits on gearing and utilise synthetic derivatives which can be used for long and short positions, such as contracts for difference, total return swaps, currency swaps, options, futures and credit default swaps.
Absolute or target returns hold appeal; FINANCE
real estate related assets through total return swaps.
IRS rules total return swap tied to real estate index is not subject to FIRPTA
This paper begins with a description of credit default swaps, total return swaps, and asset swaps and then focuses on the mechanics and risks of credit default swaps.
Credit derivatives: an overview
They come in multiple forms - credit default swaps, total return swaps, asset swaps, foreign exchange swaps and contracts for differences - and, even within these broad categories, refinements designed to suit the counterparties multiply the number of variables to the point where custodians are obliged to read and understand the documentation of virtually every transaction their clients undertake.
The economics of OTC derivatives processing
Total return swaps can also deliver a synthetic position in another asset class.
Managing assets via "alpha": an expert in asset management explores a special technique--"Alpha Transfer"--that amounts to a form of telecommuting for excess returns. Here's how it works. (Insurance Executive)
Below, I review two of the more important contracting formats encountered by the BBA survey: total return swaps and credit swaps.
Credit derivatives: just-in-time provisioning for loan losses
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