ekavaria

Do you know about the disadvantages of the Pure Yield Pickup Swap as a type of Bond Swap?

Provide some of the cons of the Pure Yield Pickup Swap as a type of Bond Swap?
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danmarino
"Disadvantages: • Increased risk of call in the event interest rate decline • Reinvestment risk is greater with higher coupon bonds.. Source: http://in.docsity.com/en-docs/Active_Bond_Portfolio_Management_Strategies_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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aliya
"An investment strategy in which lower-yield bonds are traded for higher-yield bonds "
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