Pickup Bond

0.02 sec.

Pickup bond

A bond with a relatively high coupon that is close to the date at which it is callable, meaning that a fall in interest rates will most likely cause early redemption of the bond at a premium.

Pickup Bond

A callable bond with a high coupon that is nearing the end of its call protection period. That is, the pickup bond is about to end the grace period during which it cannot be called. If prevailing interest rates fall during the remaining grace period, the pickup bond will be redeemed at a premium to its par, resulting in a profit for the bondholder, even though it will deprive her of future coupon payments.

pickup bond

A bond with a relatively high coupon and a short period remaining until it is likely to be called by the issuer. If interest rates fall and the bond is called, the investor will pick up a premium equal to the difference between the call price and the purchase price.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			Philippine Peso Philippine Stock Exchange Phillips Curve Phishing PHLX Phone Switching PHP Physical Asset Physical commodity Physical Completion Physical Custody Physical Delivery physical depreciation or deterioration Physical Hazard physical life physical obsolescence Physical Option Physical Verification Pianificazione centrale Piano pensionistico con contributi Piastre Piazza finanziaria PIBOR Picking Winners Pickup Pickup Bond Picos ascendentes Picos descendentes Picos maximos Picture Pie Model of Capital Structure Piece Pier piercing the corporate veil Piggy Back Registration Piggyback Piggyback Freight piggyback loan Piggyback mortgage Piggyback Registration Piggyback Warrants Piggybacking PIK Pilula de veneno Pin Risk Pineapple Pink 'Un Pink Book Pink Sheets Pip PIPE			picks up the slack picks up the slack picks up the slack picks up the slack picks up the tab picks up the tab picks up the tab picks up the tab picks up the tab picks up the threads picks up the threads picks up the threads picks up the threads picks way picks way picks way picks way Picksy Picksy Pickthall, Marjorie Lowry Christie Pickthank Picktooth pickup pickup pickup pickup pickup Pickup & Delivery Pickup (music) pickup arm Pickup Bond Pickup Bonds Pickup forceps Pickup forceps Pickup forceps Pickup Game Pickup group pickup impression pickup impression pickup impression pickup impression pickup impression pickup load Pickup note pickup truck pickup truck pickup truck pickup truck Pickup Truck Access Method Pickup trucks Pickup trucks Pickup trucks Pickup tube pickup voltage Pickup Zone Pickup Zone Control Officer Pickups Pickups Pickups Pickwick Landing State Resort Park Pickwick syndrome

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.