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index-linked gilts

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.

More terms

Custodian bank

Learn what a custodian bank is.

Money laundering

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

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Yield

Income from an investment as a percentage of its current price.

Yield curve

A graphical representation of interest rates over time

Diversification

An investment strategy in which money is put into a variety assets.

Capital

Learn what financial capital means

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

UK Treasury bill

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

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