Gilt-edged securities


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Gilt-edged securities

British and Irish government securities. Blue Chip.

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.
References in periodicals archive ?
He argues the government could, indeed, have issued gilt-edged securities, or have given guarantees similar to those that allowed for the completion of the Channel Tunnel Rail Link.
It is initially offering [pounds sterling]50 billion ($99bn) worth of gilt-edged securities but the size of the scheme will depend on how much banks need to get lending going again - and how much they're willing to stump up in costly collateral.
Doling it out to the rich won't work: if conditions aren't right--and of course they aren't in time of falling demand--the rich will simply grab whatever comes their way and put it into gilt-edged securities.
The fund aims to provide steady and consistent growth and invests approximately 60 per cent in UK equities and 40 per cent in Government Gilt-edged securities.
Mike O'Shea of Premier Fund Managers backs bonds, unit trusts paying fixed interest rates and Government gilt-edged securities.