Pickup
A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Investopedia Says:
When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their fixed income holdings. It is an important strategy for investors seeking a steady flow of income. Related Terms:
Bond
Bond Ladder
Fixed-Income Security
Yield
Yield Curve
Yield Pickup |