Glossary

Gilt-Edged Security / Gilt

The simplest form of UK government bond, issued by the UK government, which pays the holder a fixed cash payment, or coupon, every six months until maturity. The term is British in origin and originally referred to the bonds issued by the Bank of England which had a gilt or gilded edge. Can refer to bonds from other commonwealth nations, but is generally meant to refer to UK gilts unless specified.