DEFINITION of Yield Pickup?

When an investor sells a lower-yielding bond and replaces it with a higher-yielding bond, he or she obtains a yield pickup. The goal of yield pickup is to increase a portfolio’s risk-adjusted-performance. A yield pickup is an investing technique that includes exchanging lower-yielding bonds for higher-yielding bonds. While gaining extra yield allows for higher profits, it also means taking on more risk. A bond with a lower yield usually has a shorter maturity, whereas a bond with a higher yield usually has a longer one.
Bonds with longer maturities are more susceptible to market interest rate fluctuations. As a result, the longer maturity bond exposes an investor to interest rate risk.