= Total return swap
{title2=$\text{asset income and price change}\ \leftrightarrow\ \text{funding leg}$}
{wiki}
= TRS
{c}
{synonym}
The total-return receiver obtains a reference asset's income and price gains, pays its price losses, and pays an agreed funding leg to the total-return payer. This supplies economic exposure without buying the reference asset outright. The transfer includes ordinary market-price risk as well as <credit risk>, distinguishing it from a <credit default swap>. Both parties can have <counterparty credit risk> as the swap's replacement value changes.
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