Sentences with phrase «return swap»

So make him explain what rate he would be willing to pay if he actually had to execute a total return swap with you.

Total return swaps allow the party receiving the total return to gain exposure and benefit from a reference asset without actually owning it.

For Horizons, it is about focusing on «Tracking; costs; and tax efficiency — through Total Returns Swap contracts.

If you write a billion - dollar 5 - year total return swap on Microsoft stock, that counts as $ 80 million of «total leverage exposure,» because that's 92 percent less worrisome than the CDS.

Horizons then enters into a total return swap with another financial institution — in this case, National Bank.

«Many European ETFs are «synthetic,» meaning they get their exposure from a total return swap rather than actually holding the underlying securities,» says Al Kellett, an analyst with Morningstar.

Conclusion: The total return swap structure employed by HXT, which avoids turnover and distributions, provides a strong advantage for taxable investors.

But unlike XIU, which invests in and holds the securities that make up the underlying index, HXT plans to use derivatives such as total return swap agreements to gain exposure to the index.

Assume that two parties enter into a one - year total return swap in which one party receives the London Interbank Offered Rate, or LIBOR, in addition to a fixed margin of 2 %.

Providing pricing and valuations for Interest Rate, Credit Default, and Total Return Swaps as well as OTC Options.

Total - return swaps involve only an exchange of the returns on their underlying indices (namely, a stock index against a short - term interest - rate index) at a pre-determined frequency.

In Canada, regulations require that counterparty risk not exceed 10 % of the value of a fund; therefore, Canadian synthetic ETFs settle the amount of accumulated profits on the total - return swap whenever the amount at risk approaches this 10 % limit.

Are we going to be reading in the next Michael Lewis book about how total return swaps blew up the ETF market?

The second is a total return swap of US Treasuries for US equities.

It can be thought of as a fully funded total return swap where the underlying asset total return is exchanged for a funding fee as well as the cost of the issued CLN.

However, until I read a analysis of the total return swap tax planning by an expert independent of Horizon, I will reserve judgement.

Representing a major real estate developer in a contract dispute with a joint venture partner arising out of a total return swap transaction valued at $ 34 million and a buy - sell agreement for a $ 160 million apartment complex.

Appeared in State Street v Sompo [2010] EWHC 1461, an important case concerning the correction by construction of errors in the documentation of a CDO scheme which deprived the supersenior guarantor of any reimbursement for a total return swap termination payment of $ 157 million.

New resources from ConsenSys include a C++ Ethereum Stack: Single node private network on Ubuntu and a CryptoSwap Demonstration Video: Watch an Ethereum implementation of a Total Return Swap running on Azure BaaS.

The ATRAX fund invests in securities that provide exposure to the BNPP CASA Index, mainly non-exchange-traded total return swap contracts.

The counterparty risk can be reduced chiefly by holding total - return swaps with multiple banks for the sake of diversification.

Horizons ETFs offers several funds that use total - return swaps rather than holding stocks or bonds directly.

HXT uses a Total Return Swap structure that does not require purchasing of the underlying securities in the index, which cuts portfolio management costs relative to ETFs that physically replicate every holding in an index.

Synthetic ETFs differ from physical ETFs in that, instead of holding stocks directly, they hold a combination of cash - equivalent investments (also known as the «collateral») and a total return swap on a stock index.

HTH uses a total return swap contract to replicate the performance of the Solactive US 7 - 10 Year Treasury Bond CAD Hedged Index (Total Return).

Represented issuers and underwriters in complex structured financing transactions, including CLOs, CDOs, ABCP facilities, and total return swaps.

You've just offered him the functional equivalent of what Wall Street calls a total - return swap.

Accompanying that growth has been innovation and broader usage of a range of investment vehicles such as exchange - traded funds (ETFs), credit default swaps (CDS), collateralized loan obligations (CLO) and total return swaps (TRS).

Investor cash sunk into a synthetic ETF doesn't just go towards buying a total return swap.

Credit derivatives include credit default swaps, forwards and options on CDSs, bespoke credit guarantees and total return swaps.

Instead, it uses what's called a «total return swap.»

In a press release issued March 22, Horizons made it clear it believes the answer is no: «HXT uses a type of derivatives contract known as a total return swap, and through this structure there is no re-characterization of income taking place by HXT which will be affected by the Character Conversion Budget Measures.»

In the end, your decision comes down to which you prefer: the maximum tax deferral of a total - return swap with some additional risk, or the more transparent structure of a discount bond ETF with less tax - efficiency.

But the main reason for holding HXT is its extreme tax efficiency: it uses an instrument called a «total - return swap» to defer the tax liability of dividends by in effect commuting them to capital gains that won't be realized until you sell your shares.

It's also designed to mirror the characteristics of the broad - market funds mentioned above, but rather than holding bonds directly it gets exposure through a total return swap.

Synthetic ETFs use a derivative called a total return swap to get exposure to the indexes they track.

But a total return swap is structured so that what's at risk is not the principal: it is only the gains, and only up to 10 %.

These funds use a type of derivative called a total return swap to get exposure to the companies in the S&P / TSX 60 or the S&P 500 without actually holding any of the stocks in these -LSB-...]

The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective... the Fund will invest in a portfolio of securities including: equities, debt, warrants, distressed, high - yield, convertible, preferred, when - issued... options, total return swaps, credit default swaps, credit default indexes, currency forwards, and futures... ETFs, ETNs and commodities.»

A total return swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

The two parties involved in a total return swap are known as the total return payer and the total return receiver.

In a total return swap, the party receiving the total return collects any income generated by the asset and benefits if the price of the asset appreciates over the life of the swap.

A total return swap is a contract in which a payer and receiver exchange the credit risk and market risk of an underlying asset.

In total return swaps, the underlying asset, referred to as the reference asset, is usually an equity index, loans or bonds.

In a total return swap, the receiver assumes systematic, or market, risk and credit risk.

Parcevaux, whose firm has tripled its use of bond ETFs since starting to trade them in 2011, also uses them in arbitrage trades against total - return swaps, another type of derivative used to wager on corporate bonds.

Personally, I wonder why investment banks don't create single - name total return swaps.