Negative carry presents corporate hedging conundrum

Steep interest rate yield curves cause corporate treasurers to focus on the cost of carry.

The steepness of interest rate yield curves for the dollar, euro and sterling has left many corporates contemplating swapping appropriate portions of their liability portfolio from fixed to floating rates.

Corporates rushed out to fund and pre-fund liabilities in 2009 as fears over liquidity risk permeated the market. At the time, the historically low fixed rates provided attractive funding opportunities. However, a sustained period of low rates has meant many corporates have negative carry

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here