Definition for : Negative carry
A "negative carry" describes a situation where the Return derived from holding a Position in relation to an asset (E.g. bonds, commodities, ) 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".
To know more about it, look at what we have already written on this subject