A "negative carry" describes a situation where the Return derived from holding a Position in relation to an asset (E.g. bonds, commodities, Â…) is lower than the Cost of financing it. A negative carry is always incurred involuntarily as a result of an Investment Position having moved adversely. For instance, a negative carry can sometimes be incurred as a result of borrowing in one currency, converting proceeds in a second currency to lend in that second currency. The opposite is called "Positive carry".

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