TRS — Total Return Swap
TRS is used as part of the investment strategy to build economic exposure to specific underlying assets or markets.
Principal purposes
Market exposure
Economic exposure to an underlying asset or market without holding it directly.
Capital efficiency
Exposure obtained with less capital committed than an outright position.
Portfolio construction
Shaping the portfolio's overall exposure with precision.
Hedging
Offsetting risks elsewhere in the portfolio.
Tactical investment
Short-horizon positioning in response to market conditions.

