Definition of
gilt-edged security
UK government security paying regular fixed interest in the United Kingdom, a security issued by the government that pays a fixed rate of interest on a regular basis for a specific period of time until the redemption date, when the principal is returned. Their names, for example, Exchequer 10½% 2005 (abbreviated to Ex 10½% ’05) or Treasury 11¾% 2003–07 (abbreviated to Tr 11¾% ’03–’07) indicate the rate and redemption date. Thought to have originated in the 17th century to help fund the war with France, today they form a large part of the national debt.
Related definitions of "gilt-edged security"
- Also called gilt.
- See also index-linked gilt, short-dated gilts
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