Net financing cost

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Net financing cost

Also called the cost of carry or, simply carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned.

Net Financing Cost

1. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

2. Fees a firm charges for making a loan. The largest single net financing cost is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.
References in periodicals archive ?
6 million customers, enhanced mobile Internet usage, the implementation of greater operating efficiencies throughout the business and lowered net financing costs and resulted a further 15 percent reduction in net loss".
Net financing costs were 34mn lira in the first quarter compared to net financing income of 160mn lira a year earlier.
The company, which runs an industrial free zone on the outskirts of Dubai, incurred net financing costs of AED243.
Net financing costs are expected to be approximately 125 million in constant currencies.
SG&A added 16% YoY in dollar terms while flat gross debt and increasing net financing costs (due to BEF losing $70mn in cash over the year) drove its net loss to $42mn.
4% increase in earnings before depreciation and amortisation, net financing costs, income tax and specific non-recurring expenses for the three months to 31 March 2011.
Net financing costs will be higher but we are confident of good progress in earnings for the full year.
Net financing costs are interest on debt offset by the income from interest rate swap agreements.
Net financing costs decreased $2 million between the comparative quarters, primarily due to cost savings from refinancing and reduced interest rates on variable-rate debt (including reductions relating to the interest tracking mechanism for certain Industrial Development Revenue Bonds).
Net financing costs rose to $706 million from debt taken on to fund last year's Grolsch acquisition.
Net financing costs are interest on debt (including trust preferred securities) offset by the income from interest rate swap agreements.
credited to net policy liabilities and the net financing costs.