Total Return Swaps and Sovereign Debt Sustainability: Evolving Use of Innovative Debt Products - JD Supra
Total Return Swaps and Sovereign Debt Sustainability: Evolving Use of Innovative Debt Products - JD Supra
Source: JD Supra
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DW NOTE
Total return swaps let sovereigns swap the economic exposure of debt without moving it off the balance sheet. Finance ministries use them to shift duration risk, convert fixed payments to floating, or bet against their own bonds—all while the underlying securities stay put. It's synthetic restructuring: you get the hedge fund payoff structure without the Paris Club phone call.