negative carry

negative carry definition - finance
The result that occurs when the cost of borrowing money to pay for a securities purchase is greater than the expected return. If funds are borrowed at 8 percent, for example, and the stock or bond investment has a return of only 6 percent, the securities purchase has a negative carry. See also positive carry.

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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