Definitions for "Cost of Carry"
This is the interest cost of holding an asset for a period of time. It is either the cost of funds to finance the purchase (real cost), or the loss of income because funds are diverted from one investment to another (opportunity cost).
The costs incurred in buying an asset today and carrying it through to the delivery day of a future. Such costs may include finance costs, insurance, storage etc. and will be reduced by the benefits of holding certain assets such as dividends and coupons.
Expenses incurred while a position is being held; for example, interest on securities bought on margin, dividends paid on short positions, and other expenses.
The implied borrowing cost of the seller of a dollar roll or repurchase agreement. It includes the value of the mortgage pass-through security's cash flow that was forfeited when the security was lent to the buying party over the roll period, as well as the difference between the sale price and the buy price of the security.
Keywords:  libor, coupon, carry, sheet, financing
See Carrying Charge.
See Carry.
The cost of carry specifies the cost involved of carrying a security (i.e. bond) on the balance sheet. The cost of carry is calculated as difference between interest income (income generated by the security, e.g. coupon payment) and the cost of financing the purchase of the security (e.g. Libor).