Welcome to the Investors Trading Academy talking
glossary of financial terms and events.
Our word of the day is “Gilts”
Gilt edged securities or 'gilts' are bonds
issued by the UK government.
They have the same properties as other bonds,
in that they pay a set rate of interest at
regular intervals for a set period of time
and will be bought back at their issue price
on a set date.
Some gilts are 'perpetual', having no set
end date.
Index-linked gilts, which represent a substantial
proportion of all U.K. gilts, are indexed
to inflation, similar to Treasury Inflation
Protected Securities in the United States.
Bonds issued by blue-chip companies that are
considered to be similarly high-quality and
low-risk, are called gilt-edged securities.
The primary purchasers of gilts are pension
funds and life insurers.
