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Nominal amount

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

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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).
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Spot Rate

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

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

A physical/digital place where stockbrokers and traders can buy and sell securities.
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Custodian bank

Learn what a custodian bank is.
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DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
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Synthetic ETFs

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

Learn what Money Weighted Rate of Return or MWRR stands for in finance.
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Yield to maturity (YTM)

What is yield to maturity and why is it useful?
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