gilt-edged security

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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

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

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.

gilt-edged security

a BOND issued by the government or a company as a means of borrowing money Such bonds are called gilt-edged because they are a low-risk form of lending in so far as governments and well-established large companies rarely default on their debts.

gilt-edged security


government bond

a financial security (see BOND) issued by the government as a means of borrowing money. The term ‘gilt-edged’ denotes the fact that such securities are a very safe ASSET for people to hold insofar as governments are usually able to honour their debts. In addition, the monetary authorities use gilt-edged securities as a means of regulating the MONEY SUPPLY. See OPEN MARKET OPERATION.