what is Gilt-Edged Security?
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Gilt-edged securities. ... The term is of British origin, and then referred to the debt securities issued by the Bank of England on behalf of His/Her Majesty's Treasury, whose paper certificates had a gilt (or gilded) edge. Hence, they are known as gilt-edged securities, or gilts for short.
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Gilt-edged securities are high-grade bonds issued by some national governments and private organizations. In the past, it refereed to paper certificates issued by the Bank of England (BOE) on behalf of the Majesty's Treasury. The certificates were printed on gilt or gilded edges – hence, the name gilt-edge securities.
By nature, a gilt edge denotes a high quality item whose value remains fairly constant over time. As an investment vehicle this equates to a high grade security with low yields compared to risky, below investment-grade securities. For that reason, only blue chip companies and national governments that have a track record of operating in a safe and profitable manner issue gilt-edge securities. Besides conventional gilts, the UK government issues index-linked gilts that offer semi annual coupon payments adjusted for inflation..
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By nature, a gilt edge denotes a high quality item whose value remains fairly constant over time. As an investment vehicle this equates to a high grade security with low yields compared to risky, below investment-grade securities. For that reason, only blue chip companies and national governments that have a track record of operating in a safe and profitable manner issue gilt-edge securities. Besides conventional gilts, the UK government issues index-linked gilts that offer semi annual coupon payments adjusted for inflation..
hope it helps you. . .
plz mark brainliest. . .
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