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Glossary

From A to Z, discover clear and concise explanations of key terms, empowering you to make informed decisions in the dynamic world of finance with our comprehensive glossary.

A "total return swap" is a bilateral financial agreement in which one party makes a payment to another based on a set rate, either fixed or variable, in return for payments based on the return of a given asset - typically a loan or bond. The parties do not transfer actual ownership of the assets. A "dividend swap" is a financial transaction in which an investor exchanges the current dividend of an underlying asset for increased upside equity participation, typically through buying a call option.