Total Return Swap

Total Return Swap In this situation, one investment party pays a set rate to another party in exchange for an asset being returned to the first party. The assets is usually used as a loan or a bond and, therefore, it is simply the act of an asset being returned to its original owner in exchange for a fee. This is beneficial for one party if they to have access to an asset without actually purchasing it and it also beneficial to the owner of the asset if they need some short term cash, but they do not want to lose the asset forever.