What are 'index-linked gilts'? Definition & meaning

More terms

Synthetic ETFs

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

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

OEIC

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

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Junk Bond

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

Investment Return

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

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

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.

Stock Market

A place where shares of publicly listed companies are traded.

Index-linked gilts