Gilt-Edged Securities


DEFINITION of 'Gilt-Edged Securities '

High-grade bonds that are issued by a government or firm. This type of security originally boasted gilded edges, thus the name. In the case of a firm, a gilt-edged security is a stock or bond issued by a company that has a strong record of consistent earnings and can be relied on to cover dividends and interest.

BREAKING DOWN 'Gilt-Edged Securities '

Gilt-edged securities are a high-grade investment with very low risk. Typically, these are issued by blue chip companies that dependably meet dividend or interest payments because they are well-established and financially stable .

  1. Security

    A financial instrument that represents an ownership position ...
  2. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or ...
  3. Junk Bond

    A colloquial term for a high-yield or non-investment grade bond. ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has ...
  5. Blue Chip

    A nationally recognized, well-established and financially sound ...
  6. Blue-Chip Stock

    A blue-chip stock is the stock of a large, well-established and ...
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