Carrying charges

In general, the expenses incurred by a business entity to raise debt capital; measured primarily in terms of interest rates. – On commodity exchanges, the expenses incurred in holding a product, primarily storage costs and insurance fees. The level of financing costs is therefore also reflected in the price difference between different futures contract months. – See financialization, profit taxation, demurrage, commodity certification. – Cf. ECB Monthly Bulletin, April 2008, pp. 69 f. (Financing costs and investment activity; overviews).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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