pickup investment & finance definition
Extra
value that is gained when bonds are swapped by traders. For instance, when
bonds with the same coupon payment and maturities are swapped, or exchanged, one bond may be more valuable because
of a difference in credit quality; this results in a pickup on the transaction
for the trader ending up with the higher-quality bond.
See pickup in Wall Street Words
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.
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