Pickup

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Pickup

The gain in yield that occurs when a block of bonds is swapped for another block of higher-coupon bonds.

Pickup

The increase in yield that an investor gains when he/she swaps a bond with a lower yield and shorter maturity for one with a higher yield and longer maturity. The pick up entails risk for the holder of the lower yield bond (that is, the one who receives the high yield bond). This is because the high yield bond is almost always of lower credit quality and the longer maturity exposes the bondholder to interest rate risk and perhaps inflation risk. However, the pick up represents a higher return than the bondholder would have received with the lower yield bond.

pickup

A gain in yield that is achieved from swapping bonds. For example, a pickup of 30 basis points comes about when bonds with a 9.70% basis are traded for bonds with a 10.00% basis.
References in periodicals archive ?
Where pick-ups score is on the big open load area that can carry motorcycles, bicycles, small boats, surf boards and the like.
With payloads of more than one tonne pick-ups are treated as light goods vehicles with a taxable flat rate of just pounds 500.
Among European car-makers, Volkswagen has said it may build a big pick-up for the US market, probably from its South Carolina plant next year.
Pick-ups are bought by those who can take advantage of their business-orientated tax advantages, whilst also putting them to everyday on-road use, such as the school run or shopping.
Established in 1984, Great Wall Motors, is one of the largest manufacturers and exporters of pick-ups, sport utility vehicles and saloons in China.
Auto Business News-1 April 2010-Isuzu shifts engineering activity for new pick-ups from Japan(C)2010 ENPublishing - http://www.enpublishing.co.uk
Meanwhile, following the recent disastrous Euro NCAP crash test results for Nissan's Navara pick-up the company has announced the reintroduction of its "legendary workhorse pick-up model" the NP300.
When combined with 13,000 registrations of the entry-level Nissan pick-up the market share increases to a third.
ONE of the world's most popular pick-ups has undergone a number of changes to the lineup, the most significant being the introduction of a "stretch cab" version.
Though the spearhead for its move into the Asia-Pacific region, Nissan also will sell re-badged versions of Renault's Master, Trafic, and Kangoo in Europe, as well as a Brazilian-built version of its own Frontier pick-up in Mercosur.
Pick-up trucks are changing - they're getting getting bigger, faster and more luxurious - but Americans' devotion to the four wheelers is becoming an auto industry constant.
VOLKSWAGEN has scooped top honours for its rugged Amarok model in the booming pick-up market, which is showing some of the biggest sales increases of any sector in the last decade.