Equity Swap Total Return Swap Equity Total Return Swap Are the above three the same? Is there such thing as “Total Return Credit Swap”?
As far as I understand it, all three are the same. You’re swapping the return on an equity index for LIBOR. I don’t think there’s a such thing as a total return credit swap, but theoretically you can swap a return on anything, so who knows?
An equity total return swap includes both the capital gains and the dividends. All the aspects of return are included. A total return credit swap would function the same way. You would swap both interest rate payments AND capital gains.