Convenience yield

CONVENIENCE YIELD - Is the assumed or expected benefit of holding a long position in a physical commodi...
CONVENTION - is an agreement, principle or statement expressed or implied that is used to solve given t...

Convenience yield
The extra advantage that firms derive from holding the commodity rather than the future.
Coupon equivalent yield ...

Convenience Yield - Is the assumed or expected benefit of holding a long position in a physical commodity. Othen this holding is to satisfy existing near-term delivery commitments or to maintain uninterrupted manufacturing processes.

According to economist theorists, companies receive a convenience yield by holding inventories of certain commodities. Data on inventories of commodities are not available from one common source, although data is available from various sources.

Forward prices are obtained by taking the spot price and adding to it the cost of carry, which is the storage cost and the interest foregone minus any convenience yield or dividend/interest paid on the underlying instrument.

This is the case of a convenience yield that is greater than the risk free rate.

Backwardation says that as the contract approaches expiration, the futures contract will trade at a higher price compared to when the contract was further away from expiration. This is said to occur due to the convenience yield being higher than the ...

The corporate manager responsible for the firm's accounting activities. Sometimes referred to as the comptroller (which means the same thing).
Convenience yield ...

See also: Convertible Bond, Capital gains yield, Call date, True interest cost, Equivalent Yield