Yield Pickup

Yield Pickup

A gain in yield achieved by selling one bond and buying another with a higher yield.

Notes:

Usually, this is simply called "pickup". If the bond rating/credit risk is the same between the two bonds then this is a great strategy, but be careful that the bond you're buying isn't because its credit rating is poorer.

See also: Pickup, Yield, Yield Curve, Yield Equivalence, Yield To Call, Yield To Maturity