gilt-edged security

gilt-edged security
= gilt
A fixed-interest security or stock issued by the British government in the form of Exchequer stocks or Treasury stocks. Gilts are among the safest of all investments, as the government is unlikely to default on interest or on principal repayments. They may be irredeemable (see Consols) or redeemable. Redeemable gilts are classified as: long-dated gilts or longs (not redeemable for 15 years or more), medium-dated gilts or mediums (redeemable in 5 to 15 years), or short-dated gilts or shorts (redeemable in less than 5 years). Like most fixed-interest securities, gilts are sensitive not only to interest rates but also inflation rates. This led the government to introduce index-linked gilts in the 1970s, with interest payments moving in a specified way relative to inflation. Most gilts are issued in units of £100. If they pay a high rate of interest (i. e. higher than the current rate) a £100 unit may be worth more than £100 for a period of its life, even though it will only pay £100 on redemption

Big dictionary of business and management. 2014.

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  • gilt-edged security — British and Irish government securities. blue chip. Bloomberg Financial Dictionary A fixed interest bond or security issued by the British Government. However, from a corporate perspective, when applied to bonds, the term gilt edged is the… …   Financial and business terms

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  • Gilt-Edged Securities — High grade bonds that are issued by a government or firm. This type of security originally boasted gilded edges, thus the name. In the case of a firm, a gilt edged security is a stock or bond issued by a company that has a strong record of… …   Investment dictionary

  • gilt-edged — adj. Gilt edged is used with these nouns: ↑security …   Collocations dictionary

  • gilt — edged security …   Accounting dictionary

  • Gilt — Gilt, es una abreviatura anglosajona del término gilt edged security, con el que se designa a los valores de máxima solvencia que son equiparables al oro. Se trata exclusivamente de deuda pública soberana emitida o garantizada por los gobiernos… …   Wikipedia Español

  • gilt — 1. adj. & n. adj. 1 covered thinly with gold. 2 gold coloured. n. 1 gold or a goldlike substance applied in a thin layer to a surface. 2 (often in pl.) a gilt edged security. Phrases and idioms: gilt edged 1 (of securities, stocks, etc.) having a …   Useful english dictionary

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