What are 'conventional gilts'? Definition & meaning

More terms

Accounting standards

The rules a company follows when preparing financial statements.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Conventional gilt