Financing Cost

This Issue in United States

Carry (net Financing Cost)

Concept of Carry (net Financing Cost) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The difference between the cost of financing the purchase of an asset and the cash yield of the asset. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned.

Resources

See Also

• Derivatives Contract