imported>Doug Williamson |
imported>Doug Williamson |
| Line 1: |
Line 1: |
| 1. ''Financial markets - financial instruments - UK central government debt.''
| | ''UK - Bank of England - monetary policy''. |
|
| |
|
| Most commonly in UK usage, UK central government debt.
| | (MPR). |
|
| |
|
| | The Monetary Policy Report is a quarterly report published by the Bank of England. |
|
| |
|
| Also known as Gilt-edged securities, or Gilt-edged stock.
| | It explains the thinking of the Bank of England's Monetary Policy Committee, and the reasons for its decisions. |
| | |
| | |
| | |
| :<span style="color:#4B0082">'''''Example 1: Short-dated Conventional gilt'''''</span>
| |
| | |
| :An example of a short-dated conventional UK gilt was the 2% Treasury Gilt 2020.
| |
| | |
| :Each £100 gilt repaid £100 to the owner on 22 July 2020.
| |
| | |
| :It also paid interest on 22 July 2020, calculated at 2% per year. It was originally issued in 2014.
| |
| | |
| :It paid a predetermined fixed amount of interest (2% per year) throughout its whole life.
| |
| | |
| :It was repaid at a fixed amount of £100 at its maturity on 22 July 2020.
| |
| | |
| :Whatever happened to inflation before final maturity, these amounts did not change.
| |
| | |
| | |
| :<span style="color:#4B0082">'''''Example 2: Long-dated Conventional gilt'''''</span>
| |
| | |
| :A very long dated conventional gilt is the 4% Treasury Gilt 2060.
| |
| | |
| :It will pay interest at 4% per year until 2060.
| |
| | |
| | |
| :<span style="color:#4B0082">'''''Example 3: Index-linked gilts'''''</span>
| |
| | |
| :Index-linked gilts pay out larger amounts, the higher the rate of inflation.
| |
| | |
| :The 'index' they are linked to is the UK Retail Prices Index (RPI).
| |
| | |
| :About 25% of UK gilts are index-linked, with 75% being conventional.
| |
| | |
| | |
| Historically, gilts were printed on gilt-edged paper (heavy bond paper with a metallic edge, usually gold-leaf or gold paint).
| |
| | |
| The heavy expensive looking paper was designed to give confidence in the promise.
| |
| | |
| | |
| 2. ''Financial markets - central government debt.''
| |
| | |
| The term 'gilt' is also used to refer to the debt of certain other central governments, especially US government treasury securities.
| |
|
| |
|
|
| |
|
| == See also == | | == See also == |
| * [[Bill]] | | * [[Bank of England]] |
| * [[Bond]]
| | * [[Financial stability]] |
| * [[Bund]]
| | * [[Financial Stability Report]] |
| * [[Debt Management Office]]
| | * [[Inflation]] |
| * [[Exempt gain]]
| | * [[Monetary policy]] |
| * [[G+]]
| | * [[Monetary Policy Committee]] |
| * [[High-yield]]
| | * [[Official Bank Rate]] |
| * [[Index-linked gilt]]
| |
| * [[Investment grade]]
| |
| * [[Paper]]
| |
| * [[Risk-free rate of return]]
| |
| * [[Semi-annual rate]]
| |
| * [[Share]]
| |
| * [[Sovereign]]
| |
| * [[Stock]]
| |
| * [[Stock exchange]] | |
| * [[Swap spread risk]] | |
| * [[Tap stock]] | |
| * [[Treasury]] | |
| * [[Treasury securities]] | |
| * [[United Kingdom]] | |
|
| |
|
| [[Category:Corporate_financial_management]] | | [[Category:Accounting,_tax_and_regulation]] |
| | [[Category:The_business_context]] |
| | [[Category:Identify_and_assess_risks]] |
| | [[Category:Manage_risks]] |
