Pure Yield Pickup Swap
A transaction in which bonds with lower yields are swapped for bonds with higher yields.
Investopedia Commentary
Pure yield pickup swaps are usually a risky investment strategy. Investors using this strategy expose themselves to higher interest rate risk since higher yielding bonds will have a longer term to maturity. In addition, high yielding bonds are usually of lower credit quality, thereby exposing the investor to higher default risk.
See also: Bond Swap, Credit Rating, Default Risk, Swap, Yield