Carry
What a position earns simply from the passage of time: accrued coupon less the cost of the money tied up in the bond.
Formula
\text{Carry} = \text{Coupon income} - \text{Funding cost}How to read the number
It answers whether a position makes money while the price stands still.
When the metric lies
When the money-market rate exceeds the coupon, carry is negative: holding the position costs money, and only a price move can justify it.
Also known as: carry income, cost of carry