Pickup

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Dictionary Says

Definition of 'Pickup'

A gain in yield made by selling one bond and buying another. When market interest rates change, bond yields change. If the new interest rates are higher than the old rates, investors can achieve a better yield, or pickup, by selling their old bonds and buying new ones that have the same level of risk. However, if interest rates are steady, or declining, the only way to achieve a pickup is to buy existing, higher interest-rate bonds at a premium or to buy higher-risk bonds that carry a higher yield. Thus, a pickup strategy may entail cost or risk.

Also referred to as "yield pickup."
Investopedia Says

Investopedia explains 'Pickup'

Pickup is the most common reason why investors trade bonds. Other reasons include an anticipated credit upgrade for a bond issuer (particularly if the upgrade will move the bond from junk to investment grade), a credit-defense trade to limit a portfolio's exposure to default risk and a sector-rotation trade to benefit from anticipated outperformance in a particular industry or sector. Investors also use yield curve adjustment trades to change the duration of a bond portfolio based on expectations about the direction of interest rates. When they anticipate rising interest rates, they will want to shorten the duration of their portfolios; when they anticipate declining interest rates, they will want to lengthen the duration of their portfolios.

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'Pickup'

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    ... Learn more, in Taxation Rules For Bond Investors.) TUTORIAL: Bond Basics Yield Pickup
    The first (and most common) reason for investors to trade bonds is to ...

  • Automakers Bask In Warm Glow Of February Sales

    http://stocks.investopedia.com/stock-analysis/2011/Automakers-Bask-In-Warm-Glow-Of-February-Sales-GM-F-TM-HMC-NSANY-AN0310.aspx
    ... increased 74%. Pickup truck sales increased by 65%; pickup sales are usually
    one of the first victims of high gas prices. Toyota's ...

  • Using The ISM Manufacturing Index To Find Forex Trends

    http://www.investopedia.com/articles/fx/11/using-the-ISM-manufacturing-index-to-trade-forex.asp
    ... For example, a pickup in the ISM manufacturing survey can hint at a pickup in business
    spending and investment, which supports economic growth. ...

  • Less Trash For More Cash

    http://www.investopedia.com/articles/pf/07/save-money-environment.asp
    ... You could also sell your household or electronic goods and again have people pay
    for the pickup and delivery, or if they are local, have them come to your ...

  • 5 Ways Your Partner Can Ruin Your Credit - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1210/5-Ways-Your-Partner-Can-Ruin-Your-Credit.aspx
    ... When you're thinking of pickup lines, probably none of them include, "Can I see
    your credit report?" Talking finance isn't exactly romantic, which is why most ...

  • 5 Ways Your Partner Can Ruin Your Credit Slideshow | Investopedia

    http://www.investopedia.com/slide-show/your-partner-can-ruin-your-credit
    ... When you're thinking of pickup lines, probably none of them include, "Can I see
    your credit report?" Talking finance isn't exactly romantic, which is why most ...

  • Asset Allocation In A Bond Portfolio

    http://www.investopedia.com/articles/04/111804.asp
    ... Asset classes like IPS, MBS, and ABS tend to give you yield pickup without degradation
    in credit quality--many of these issues come with an AAA credit rating. ...

  • Top 5 Ways To Make Your Credit Card Work For You - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/0911/Top-5-Ways-To-Make-Your-Credit-Card-Work-For-You.aspx
    ... The primary renter has to be the person who was driving during the accident, some
    cards won't cover pickup trucks, the rental period has to be less than 30 days ...

  • 6 Smartphone Apps To Help Save On Holiday Shopping - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/1111/6-Smartphone-Apps-To-Help-Save-On-Holiday-Shopping.aspx
    ... lists. When you find the best price, you can buy the item online from
    within the app for home delivery or in-store pickup. This ...

  • 4 ETFs On Fire Right Now

    http://stocks.investopedia.com/stock-analysis/2012/4-ETFs-On-Fire-Right-Now-SLV-SLX-NUE-TAN0203.aspx
    ... After a dismal showing in 2011, this fund snapped back to life during the month,
    as steelmakers such as Nucor (NYSE:NUE) predict a pickup in demand for steel ...

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