Introduction to Polyurethanes: Composite Wood. Polyurethanes play a major role in todayâs modern materials such as in composite wood, which is a combination of synthetic and natural materials.
Total Return Swap (TRS) A Total Return Swap (TRS) is a bilateral financial transaction where the counterparties swap the total return of a single asset or basket of assets in exchange for periodic cash flows, typically a floating rate such as LIBOR +/- a basis point spread and a guarantee against any capital losses.
In an effort to diversify risk, investors look to new asset classes. The Loan market has traditionally been almost exclusively dominated by banks. Using the Total Return Swap, an investor can achieve exposure to this new asset class, previously un-obtainable. Assume Bank A has a 3 yr fixed rate 8% loan to Company Z.