A current-perpendicular-to-the-plane spin-valve (CPP-SV) magnetoresistive sensor has an improved antiparallel (AP) pinned structure, i.e., a structure with first (AP1) and second (AP2) ferromagnetic layers separated by a nonmagnetic antiparallel coupling (APC) layer with the magnetization directions of AP1 and AP2 oriented substantially antiparallel. The AP2 ferromagnetic layer (the layer in contact with the SV spacer layer) is an alloy of a ferromagnetic material and one or more additive elements of Cu, Au and Ag. The additive elements reduce the magnetic moment of the AP2 layer, which enables its thickness to be increased so that its magnetic moment remains close to the magnetic moment of the AP1 ferromagnetic layer. The thicker AP2 layer allows for more bulk spin-dependent scattering of electrons which increases the magnetoresistance of the sensor. An annealed AP2 layer results in more segregation of the ferromagnetic material grains and the additive element grains, and thus a further improvement in magnetoresistance as a result of more interfacial scattering of electrons.