convenience yield

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convenience yield definition - finance
A premium that is earned by people who hold a physical commodity. A convenience yield reflects the near-term scarcity of the commodity or underlying asset and it also reflects the preference that consumers have for holding the equivalent cash position. Convenience yields show up as an adjustment to the theoretical forward, or future, price of a commodity or the future contract delivery price. Sometimes convenience yields are earned by holders of a government bond that is in short supply in the repo market.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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"convenience yield." Webster's New World Finance and Investment Dictionary. 2009

  • Your Dictionary. 5 July 2009
  • <www.yourdictionary.com/finance/convenience-yield>

APA Style

convenience yield. (2009). In Webster's New World Finance and Investment Dictionary

  • Retrieved July 5th, 2009, from www.yourdictionary.com/finance/convenience-yield

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