A total return swap (TRS) allows one party to receive the total economic return of a reference asset while paying a floating rate. Which investor would MOST likely use a TRS to gain exposure to a bond without owning it?
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A
A pension fund seeking to immunize its liabilities
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B
A hedge fund seeking leveraged exposure to a high-yield bond index without purchasing the bonds
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C
A corporation hedging its foreign exchange receivables
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D
An insurance company seeking to reduce credit risk on existing bond holdings