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1. A swap for a security with a higher yield. For example, an investor may swap a bond with a certain face value and coupon for another bond with an equal face value but a higher coupon. One refers to the extra funds the investor yields from the higher coupon as a payup.

2. The additional money an investor needs in order to buy a security with a higher market value. For example, an investor may need payup money if he/she owns a bond, but wishes to buy another bond with a higher coupon rate.


Additional funds required when an investor swaps a current holding for higher-value securities. For example, a person might swap low-interest bonds for higher-coupon bonds of equal face value but of higher market value.
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Not only did the lower price bring in more than twice the total orders and just about twice the net profit ratio, but the percentage of pay-ups was higher.
This development enhanced the value of our specified pools, as evidenced by the significant increase in our average pay-ups.
As a result, the relative price movements of specified pools were not uniform and pay-ups for certain segments of the specified pool market appreciated greatly, while others were largely unchanged.
Try "17 Tested Techniques to Increase Your Bill-me Order Pay-Ups," something the subscriber can put on his shelf and think, "Now I have that
Pay-ups are price premiums for specified pools relative to their TBA counterparts.
I know an iron-clad guarantee is part of the "emphasizing low risk" marketing platform that I said could lead to lower pay-ups on bill-me's in some markets.
Over the years while I was executive director of the newsletter association nothing we could do to our conversion series ever changed our pay-up rate on bill-me orders from about 67 percent.
If you sell to Fortune 1000 companies, the eventual pay-up is pretty high.
Third, pay-ups (price premiums over corresponding TBA prices) for specified Agency pools have experienced a substantial contraction.
Publishers I've spoken with have widely different reports on eventual pay-ups.
On the asset side, we believe that specified pools have become more attractively priced as a result of the recent cheapening in pay-ups, and after reducing our exposure earlier in the second quarter, we re-established our exposures to pay-ups at what we think are extremely attractive entry points.
While in the first quarter specified pools had benefited from their prepayment protection features relative to their generic or TBA counterparts, this trend reversed in the second quarter as interest rates rose, and as a result TBA roll prices improved and pay-ups cheapened.