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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

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Running yield

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

NYSE

The world's largest stock exchange. Wall St HQ.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

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.

Quantitative easing

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

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

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