Terry:
I have seen much the same thing with a DEM transverter and my K2, and I agree with your assessment. The IF circuitry in the DEM transverters does not seem to be designed to give anything close to a 50 ohm input impedance, especially when set for for very low input powers. It is quite reactive, at least for my transverter. I ended up adding a component or two inside the DEM transverter to improve the matching, so the K2 could drive it properly.
73,
Steve VE3SMA
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