Gilt-edged security

gilt-edged security

Any high-quality security in which the chance of default or failure is quite slim.

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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.