Gilts: related pages

Government bonds

Bonds issued by a government in its own currency.

Sovereign debt

A government's borrowings.

Sovereign risk

The risk of a government defaulting in such a way as to prevent judicial enforcement of its debts.

Money market fund

A fund that invests in short term debt instruments.

PIBS (permanent interest bearing shares)

Securities issued by building societies that pay fixed interest. Often not redeemable.

Bonds

A bond is a security that pays interest. The majority of bonds have a fixed life at the end of which the principal is returned.

Income investing

Investing to generate income rather than capital growth.

Real interest rates

Interest rates adjusted for inflation: (1+r)/(1 + i) - 1 where r is the nominal interest rates and i is inflation.

Redeemable

A security is redeemable is the issuer has a right to re-pay the liability it represents and cancel it.

Repo

The sale of securities (usually government debt) tied to an agreement to buy the securities back later.