negative carry

Definition of "negative carry"
  1. A situation where the cost to finance a financial asset exceeds the income generated by that asset
How to use "negative carry" in a sentence
  1. The bank experienced a negative carry when the interest on the loan was higher than the returns from the investment.
  2. The negative carry situation led the investor to consider selling the asset.
  3. Due to negative carry, the cost of maintaining the property was higher than the rental income it was producing.

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