Origin and Etymology of gilt
Definition of gilt
Financial Definition of GILT
What It Is
Gilts are bonds issued by the British government. India's government bonds are also called gilts.
How It Works
Gilts get their nickname from the gilded edges that the security's certificates used to have.
In Britain, gilts are issued in 100-pound units and represent a loan to the government. The bonds promise income over a fixed term, and the government repays the principal at maturity. Investors can buy gilts from the British government by going to the government's Debt Management Office or via a brokerage service. Investors can also buy gilts at the post office.
Why It Matters
Gilts are the British equivalent of U.S. Treasury securities. Like Treasurys, some are indexed to inflation. Large financial institutions are the largest purchasers.
GILT Defined for English Language Learners
Definition of gilt for English Language Learners
: having a golden color
: covered with gilt
GILT Defined for Kids
Definition of gilt for Students
- The vase was covered with gilt.
Seen and Heard
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