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Does value of a TRS only involve past price movement and not expected returns?

Yes. The value of the asset leg is just the value of the asset itself, because the TRS can be perfectly replicated by owning the asset. Alternatively, you could say that whatever the potential ...
dm63's user avatar
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Does value of a TRS only involve past price movement and not expected returns?

TRS are just financing trades. The dealer is charging you to place the asset on their balance sheet. So if you are receiving total return on stock A, you will receive appreciation and dividends over ...
AlRacoon's user avatar
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