Sovereign borrowers and issuers operate in a dynamic financing landscape in which commercial counterparties have long sought, with varying degrees of success, to establish some form of priority or enhanced credit protection. Over the course of years, many innovative debt products – from commodity-linked prepayment facilities, resource-backed lending, repos and bilateral secured arrangements – have all been deployed as alternatives or supplements to conventional bonds and loans, driven by need, speed and executability. Total return swaps are only one instrument among many in this environment, but their recent use by sovereigns has attracted significant attention. […]