CONVENIENCE YIELD

The nonmonetary return that is derived from holding an ASSET, such as not facing a shortfall in the event of excess demand. The existence of a convenience yield creates an incremental return that is included in FORWARD PRICE computations related to FUTURES or FORWARDS.

More On This Topic



Link to This Definition
Did you find this definition of CONVENIENCE YIELD helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary