negative carry definition

negative carry

Banking: Situation where the income earned from a loan is less than the bank's cost of funds. Also called negative cost of carry.

Borrowing: Situation where the cost of funds is more than the income obtained from them. Also called reverse leverage.

Securities trading: Situation where income earned from securities is less than the cost of funds borrowed to purchase them.

negative carry is in the Accounting & Auditing, Banking, Commerce & Finance and Securities & Futures Trading subjects.

negative carry appears in the definitions of the following terms: reverse leverage and negative cost of carry

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