The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

NEGATIVE CARRY Definition & Legal Meaning

Definition & Citations:

1. In Banking, this occurs when income earned from a loan is less than the bank’s fund costs. Also known as negative cost of carry. 2. In Borrowing, this occurs when fund costs exceeds fund income obtained. Also known as reverse leverage. 3. In Securities trading, this occurs when securities’ income earned is less than fund cost borrowed to purchase them.


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