imported>Doug Williamson |
imported>Administrator |
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| 1. ''Financial markets - financial instruments - UK central government debt.''
| | ''Law.'' |
| | | Of a decision, a precedent the point of law of which is the same as or sufficiently similar to the significant facts of those of a later case (which must therefore be decided in the same way, unless by a higher court). |
| Most commonly in UK usage, UK central government debt.
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| Also known as Gilt-edged securities, or Gilt-edged stock.
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| :<span style="color:#4B0082">'''''Example 1: Short-dated Conventional gilt'''''</span>
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| :An example of a short-dated conventional UK gilt was the 2% Treasury Gilt 2020.
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| :Each £100 gilt repaid £100 to the owner on 22 July 2020.
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| :It also paid interest on 22 July 2020, calculated at 2% per year. It was originally issued in 2014.
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| :It paid a predetermined fixed amount of interest (2% per year) throughout its whole life.
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| :It was repaid at a fixed amount of £100 at its maturity on 22 July 2020.
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| :Whatever happened to inflation before final maturity, these amounts did not change.
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| :<span style="color:#4B0082">'''''Example 2: Long-dated Conventional gilt'''''</span>
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| :A very long dated conventional gilt is the 4% Treasury Gilt 2060.
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| :It will pay interest at 4% per year until 2060.
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| :<span style="color:#4B0082">'''''Example 3: Index-linked gilts'''''</span>
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| :Index-linked gilts pay out larger amounts, the higher the rate of inflation.
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| :The 'index' they are linked to is the UK Retail Prices Index (RPI).
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| :About 25% of UK gilts are index-linked, with 75% being conventional.
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| Historically, gilts were printed on gilt-edged paper (heavy bond paper with a metallic edge, usually gold-leaf or gold paint).
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| The heavy expensive looking paper was designed to give confidence in the promise.
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| 2. ''Financial markets - central government debt.''
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| The term 'gilt' is also used to refer to the debt of certain other central governments, especially US government treasury securities.
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| == See also == | | == See also == |
| * [[Bill]] | | * [[Corporation Tax]] |
| * [[Bond]] | | * [[Dividends]] |
| * [[Bund]] | | * [[Income Tax]] |
| * [[Debt Management Office]] | | * [[Tax credit]] |
| * [[Exempt gain]]
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| * [[G+]]
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| * [[Index-linked gilt]]
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| * [[Paper]]
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| * [[Risk-free rate of return]]
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| * [[Semi-annual rate]]
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| * [[Share]]
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| * [[Sovereign]]
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| * [[Stock]]
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| * [[Stock exchange]]
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| * [[Swap spread risk]]
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| * [[Tap stock]]
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| * [[Treasury]]
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| * [[Treasury securities]]
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| * [[United Kingdom]]
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| [[Category:Corporate_financial_management]]
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