Gilt-Edged Bond

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Dictionary Says

Definition of 'Gilt-Edged Bond'

A bond that is issued by a blue chip company. These bonds are considered to be high grade, with little risk of interest payment interruption or default.
Investopedia Says

Investopedia explains 'Gilt-Edged Bond'

This is the closest you can get to a government issue without actually buying one.

Related Definitions

  • Blue Chip

    A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to ...
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  • Bond

    A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used ...
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  • Interest

    1. The charge for the privilege of borrowing money, typically expressed as an annual percentage rate. 2. The amount of ownership a stockholder has in a company, usually expressed as a ...
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    • AAA

      The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has an exceptional degree of creditworthiness and can easily meet ...
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    • Fixed-Interest Security

      A debt instrument such as a bond, debenture or gilt-edged bond that investors use to loan money to a company in exchange for interest payments. A fixed-interest security pays a specified ...
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    • Gilt-Edged Switching

      The selling and repurchasing of certain high-grade stocks or bonds to capture profits. Gilt-edged switching involves gilt-edged security, which can be high-grade stock or bond issued by ...
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