Incremental cost of capital

(redirected from Incremental Cost of Funds)

Incremental cost of capital

Average cost applicable to the issue of each additional unit of debt and equity.

Incremental Cost of Capital

The average cost to a company to issue one more unit of debt or equity. The incremental cost of capital varies according to how many more or fewer units a company wishes to issue. See also: Incremental cost.
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In a challenging yield curve environment, given the yields on new investments compared to the incremental cost of funds, we did not reinvest all of the principal from scheduled maturities, instead, we intentionally decreased the period end size of our available for sale investment portfolio from $223.9 million at December 31, 2018 to $191.9 million at March 31, 2019, a decline of $32.0 million or 14%.
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