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enter image description hereWhat does takeout and putup values mean in fixed income trade and how would you interpret these values?

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  • Can you provide the context? I've heard takeout used a few different ways but have never heard of "putup"
    – D Stanley
    Commented Jan 23 at 15:59
  • I imagine putup is the opposite/the other side of a trade. Well, buying one bond and selling the other bond is the context I am referring to. Commented Jan 23 at 16:04
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    It is helpful to include the full context of the quote. Presumably, you're looking at a statement from some resource that is using both of these terms. It's helpful to say "I was reading Bond Investing for Fun and Profit by John Doe. On page 16 he writes "I putup with a lot of grief for fouling up the takeout order..."" because there may be some context there. Commented Jan 23 at 16:53
  • Acctually, it's from a bloomberg screen shot of a trade ticket and don't think I can post that on here. Commented Jan 23 at 19:17
  • pasted the bloomberg snippet Commented Jan 23 at 19:29

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Bloomberg usually has pretty good help and may define those terms in its online help.

My guess based on the screenshot you show is:

The takeout/putup number is the difference in NPV (how much you would get/have to pay at settlement) between the two bonds. If you buy $1,000 notional of one of these bonds and sell the same amount of the other, you will "take out" $16,037 (or vice verse, you would have to "put up" an additional $16,037 to buy the more expensive one).

Note that it doesn't directly say anything about the quality of those bonds (a cheaper bond is not always "better") just shows the difference needed to settle the trade.

I have never seen these terms used in an analytic context - they may be specific to Bloomberg or a trading term. But the main thing to notice is that it is the difference in NPV between the two bonds.

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