What are 'conventional gilts'? Definition & meaning

More terms

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Account balance

The amount of money a user has stored in a financial repository.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Float

Listing a company on a stock exchange, or the shares that are genuinely up for grabs once it’s there.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Conventional gilt