Yield Pickup
A gain in yield achieved by selling one bond and buying another with a higher yield. Investopedia Says:
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. Related Terms:
Pickup
Yield
Yield Curve
Yield Equivalence
Yield To Call
Yield To Maturity |