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 ?
It is initially offering Au50bn ($100bn) of gilt-edged securities, but the size of the scheme will depend on how much banks need to get lending going again.
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.
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.