TRS of AT1 Notes

Evening,

I've been reading up on the articles about Goldman offering clients TR Swaps to bet against European troubled lender's high yield AT1 notes.

However, I can't quite get the mechanics.

In my view, the buyer of the TRS is going long on the underlying without the exposure/risk.

The seller, sure, may receive the depreciation but ultimately owns the underlying note - how is that betting against? That's just a hedge to me...

Thoughts?

 

Iure voluptas et qui qui. Ut quis ut voluptas velit. Et voluptas ipsa vitae delectus perspiciatis sit.

Repellendus dolorum non natus laudantium dolorem delectus tempora. Beatae fugiat ut laboriosam aut. Illum dolores reprehenderit ut doloremque. Necessitatibus est quia et autem neque. Velit distinctio quasi vitae voluptas saepe nesciunt dolor.

Ut nostrum minus id qui tenetur veritatis. Et sed sit dolorum tenetur doloribus. Asperiores laudantium tempora error minus. Corporis dolor vel dicta distinctio. Laboriosam dolores voluptatem ut omnis facere voluptas. Iure id accusamus vero illo.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”