A total return swap is a derivative contract where one counterparty pays sums based on a floating interest rate, for example Libor plus a given spread, and receives payments based on the return of a ...

In a total return swap (TRS), an investor (the total return receiver) enters into a derivatives contract whereby it will receive all the cash flows associated with a given reference asset or financial ...

Total return swaps provide an alternative vehicle to trading the underlying index of cash securities, to simplify and avoid the infrastructure and maintenance associated with cash positions.