The rise in the convenience yield
explains up to 1 percentage point of the trend decline in the natural rate, and it is precisely estimated.
Other related studies on backwardation analyzed the notion of convenience yield
A rational story for the high yields of market-discount munis could be a convenience yield
demanded by individuals to deal with the complexities of computing tax liabilities.
Housing Price Variation and the Convenience Yield
to Owning a Home" by Jason Thomas and Robert Savickas.
This convenience yield
reflects the flexibility created by holding inventory.
for real options is analogous to the dividend rate found in valorizing financial options.
Storage benefits may sound strange, but the notion of a convenience yield
is quite intuitive.
For the crop there is assumed to be a world futures market, which can be used to determine the convenience yield
In theory, the convenience yield
is the flow of services that accrue to the holder of the spot commodity but not to the holder of a futures contract.
The Relationship Between Risk Premium and Convenience Yield
Models (Viola Markert and Heinz Zimmermann).
The present paper narrows the focus to just two leading candidates: a rising convenience yield
, and the U.
The authors argue that the corporate bond spread reflects a convenience yield
that investors attribute to Treasury debt.