Total return swap (TRS) structure diagram
Total return swap (TRS) structure diagram

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Total return swap (TRS) structure diagram
  • How a total return swap works

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How a total return swap works

  1. The TRS payer is a bank, A, and the TRS receiver is a hedge fund, B.

  2. A holds the reference asset on its balance sheet.