![Total Return Swap (TRS)](https://img-cdn.financeunlocked.com/headers-images/financeunlocked/1.jpg?ik-sdk-version=javascript-1.0.3)
Total Return Swap (TRS)
In a total return swap, one derivative counterparty (the payer) pays the total return (cf.) of an underlying reference asset, portfolio or index, while the total return receiver pays Libor plus a credit spread. Total return swaps are popular with institutional investors.