positive carry

positive carry definition - business

positive carry

The current net income from an investment position when the current income from the investment exceeds its cost of carry. For example, a Treasury bond with a current yield of 5.2% has a positive carry if its purchase can be financed at 4.9%. Compare negative carry. See also carrying charge 1, carry trade.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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