Total Return Swaps are contracts between two parties in which a reference asset or group of assets is used to provide one party with regular interest payments, plus any capital gains (or losses) over the term of the contract. The other party benefits by receiving a set or variable rate of cash flow from the first party. Thus, a Total Return Swap enables one party to receive financial ...
Bonds are one of the most popular types of debt securities. Bonds are issued by companies and governments, the most notable example of which is Treasury Bonds issued by the US government. In fact, the very first securities traded in the United States were bonds issued in 1790 to raise funds to pay down debts incurred by the newly formed government during the Revolutionary War.