Negative carry
Negative carry
Negative carry occurs when the cost to finance an investment purchase exceeds the yield produced by the investment. For example, if an investor borrows money at 8 percent interest, and uses those funds to purchase a bond that pays 5 percent interest, the investor would be losing 3 percent interest on the investment.
National Rates
| Loan Type | Today |
|---|---|
| 30 yr fixed |
4.92 |
| 15 yr fixed |
4.36 |
| 5/1 ARM | 3.76 |
Rates may contain points
