The key to a pure pickup yield swap is that the bond price of one or both bonds has to be in disequilibrium.

Name: The key to a pure pickup yield swap is that the bond price of one or both bonds has to be in disequilibrium.
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The essence of a pure pickup yield swap is that the bond price of one or both bonds needs to be out of equilibrium. By entering into a swap agreement, the parties attempt to exploit the market imbalance and gain profit.

The Key to a Pure Pickup Yield Swap Is That