Gilt Edged Bond
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Any high-quality security in which the chance of default or failure is quite slim.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
gilt-edged security or
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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005