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Gilt-Edged Security |
Also found in: Wikipedia | 0.02 sec. |
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Gilt Edged Bond A private-issued, investment grade bond. Only blue chip companies issue gilt edged bonds and, for that reason, they have high ratings. Gilt edged bonds are considered sufficiently low-risk that the law allows banks to invest in them. In addition to being low-risk, investment-grade bonds are low-return, greatly reducing the cost on the issuer. They are considered the next safest bond to a Treasury security.
Gilt-edged security. When the term gilt-edged is applied to bonds, it's the equivalent of describing a stock as a blue chip. Both terms mean that the issuing corporation has a long, strong record for meeting its financial obligations to its investors. That includes making interest and dividend payments on time and redeeming bonds on schedule. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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