Yield Pickup

The extra yield an investor receives when he/she exchanges a bond with a lower yield (and usually a shorter maturity) for one with a higher yield (and usually a longer maturity). While this exchange sounds advantageous, it is risky because the yield pickup often comes from a bond with lower credit quality, and the longer maturity likewise exposes the investor to interest rate risk. However, the yield pickup is still a guaranteed higher return, and many investors take advantage of them. See also: Pure yield pickup swap.

Mentioned in ?

Pure yield pickup swap

References in periodicals archive ?

5 bp yield pickup versus the January sale, and the near 250 bp gain versus the German maturity.

Treasury 7-year auction preview: the sale should see about average results

This investor portfolio rebalancing for yield pickup increases the potential for excesses in certain segments of the financial and real asset market," he said in an e-mail to reporters.

PH assumes cautious stance on Fed

Corporates, meantime, offer some yield pickup, although sub-investment grade and peripheral Europe looks extended.

Markets carry on regardless; Despite a quarter of geopolitical stress, the markets reported a good performance in most asset classes, reports CHARLES NICHOLSON

We live in a very low interest rate environment and investors are still looking for a yield pickup," said Christian Lenk, a fixed income strategist at DZ Bank.

Europe stocks up

The report also noted that foreign bond holdings of the region's local currency government bonds held steady in the final three months of 2013 given the region's solid economic outlook and the attractive yield pickup versus other markets.

East Asia's bond markets need to be prepared for increasing risks - ADB

That said, foreign bond holdings of the region s local currency government bonds held steady in the final three months of 2013 given the region s solid economic outlook and the attractive yield pickup versus other markets.

Indonesia : Asia's Bond Markets Must Be Ready to Face the Rising Risk of Contagion

Notice also that the client is earning 30 points more than the current AA rate, a yield pickup made possible by linking two parties whose assets have different returns.

Interest rate swaps that benefit both parties

This, combined with limited yield pickup at the longer end of the maturity spectrum for certain MMF-eligible asset classes, has steered mangers toward safe-haven U.

Fitch: US MMF Shadow NAV Volatility Wanes but Challenges Remain

58 percent for the quarter, which is the result of continued loan yield pickup from recent rate increases combined with our stable core deposit base.