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Conventional gilts

Conventional gilt

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).

More terms

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Account balance

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

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Securities

Bonds and stocks.

Professional Client

An investor that is able to meet several regulatory criteria.

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Depository

We look at what is a depository and what role they play in keeping markets work.

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