What are 'conventional gilts'? Definition & meaning

More terms

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.

Withholding Tax

A tax deduction made at the source of the payment.

Spot Rate

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

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Balance sheet

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

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

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Conventional gilt