positive carry

Positive carry

Positive Carry

A situation in which an investor has two opposite positions and in which the cash inflow from one position exceeds the cash outflow of the other. For example, if one borrows money, owes 10% interest, and then promptly lends the same amount of money at 12% interest, then the borrower/lender has a positive carry.

positive carry

The current net income from an investment position when the current income from the investment exceeds its cost of carry. A Treasury bond with a current yield of 14% has a positive carry if its purchase can be financed at 12%. Compare negative carry. See also carrying charges.
References in periodicals archive ?
As a non-yielding asset, it has a minimal storage cost, so when you compare it to negative-yielding assets, it actually has a positive carry.
Gold has a positive carry compared to negative interest rates," said Osborne.
When we get closer to our cost of deposits in US dollars, then our customers will start to require more interest, so [the banks' advantage from the interest rate developments] will probably be 80 percent [of the total] benefit for us, and then 70 percent, then 60 and 50; but there will always still be a positive carry on our deposits, after all those accumulated negative carries.
These are: economic fundamentals, inflation expectations (good; Japan is likely to inflate the economy by printing yen, and traditionally real estate does well during inflationary periods, interest rates (good; super low interest rates, ability to borrow (mixed; some progressive Japanese institutions will lend, but most are playing defense on account of their existing problems, positive carry good; the cost of borrowing in Japan is typically less than the yield, and lastly, relative value negative).
Now that the rental market is better, it would be wrong to penalize the sponsor who can now rent them and have a positive carry.
6 million in positive carry forward (a modest 1% of operations), as spending reportedly stays below budget.
The acquisition of this portfolio presents a positive carry between real estate initial yields and the marginal cost of debt highlighting the ability of alstria to execute accretive deals' added Alexander Dexne, CFO of alstria, 'it will have a positive impact on our FFO and thus on our dividend for 2008.
With volatility's rise, UBS Global Asset Management's analysis indicates that the overvaluation of positive carry currencies, which have been driven further upward by the public's high carry trade appetite, has a high likelihood of correcting in the not-too-distant future.
During the first quarter of 2007, the Company's net interest income, plus the positive carry from interest rate swaps, was $64.

Full browser ?