payup

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Payup

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

payup

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.