Gilts are bonds issued by the UK Government. The gilts market can trace its origins to the creation of the Bank of England and the British national debt in 1694. Since 1998 they have been issued by the UK Debt Management Office on behalf of HM Treasury. The term gilt refers to their primary characteristic: their security, as the UK government has never defaulted on its debt. The UK government also has a AAA credit rating from both Standard & Poor's and Moody's. A government bond is a bond issued by a national government denominated in the countrys own currency. ... The United Kingdom is a unitary state and a democratic constitutional monarchy. ... The Bank of England is the central bank of the United Kingdom, sometimes known as The Old Lady of Threadneedle Street or The Old Lady. The nearest London Underground station, and thus a busy commuter stop, is Bank station. ... Events February 6 - The colony Quilombo dos Palmares is destroyed. ... 1998 (MCMXCVIII) is a common year starting on Thursday of the Gregorian calendar, and was designated the International Year of the Ocean. ... The UK Debt Management Office (DMO), was established on 1 April 1998. ... The new eastern entrance to HM Treasury HM Treasury (Her/His Majestys Treasury) is the United Kingdom government department responsible for and putting into effect the UK Governments financial and economic policy. ... The Standard and Poors Corporation (S&P), a subsidiary of McGraw-Hill, is a company that performs financial research and analysis on stocks and debt instruments. ... Moodys Corporation (NYSE: MCO) is the holding company for Moodys Investors Service which performs financial research and analysis on commercial and government entities. ...

Conventional Gilts

These are the simplest form of UK government bond and make up the largest share of UK government debt. A conventional gilt is a bond issued by the UK government which pays the holder a fixed cash payment (or coupon) every six months until maturity, at which point the holder receives their final coupon payment and principal. A government bond is a bond issued by a national government denominated in the countrys own currency. ... See also Coupon (bond) In marketing a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. ... // Biology In Biology, an organism is said to have reached maturity when it has reached a stage at which it could produce offspring. ... A principal is: The head of an educational institution. ...

Conventional gilts are denoted by their coupon rate and maturity, e.g. 4¼% Treasury Gilt 2055. The coupon paid on the gilt typically reflects the market rate of interest at the time of issue of the gilt, and indicates the cash payment per £100 that the holder will receive each year in two semi-annual payments.

Historically, gilt names referred to their purpose of issuance, or signified how a stock had been created, such as 10¼% Conversion Stock 1999. In recent years, gilts have been generally named Treasury Stocks. However, from 2005-2006, all new issues of gilts are to be called Treasury Gilts.

Index-linked Gilts

These account for around a quarter of UK government debt. The UK was one of the first developed economies to issue index-linked bonds in 1981, and has issued 19 index-linked bonds since that date. Like conventional gilts, index-linked gilts pay coupons in line with market interest rates. However, their semi-annual coupons and principal payment are adjusted by the Retail Prices Index in gilts have had an eight-month indexation lag. However in 2005 the UK Debt Management Office announced that all new issues of index-linked gilts would use a three-month indexation lag design, first used in the Canadian Real Return Bond market. 1981 (MCMLXXXI) is a common year starting on Thursday of the Gregorian calendar. ...

In September 2005, the UK Government issued the longest ever index-linked government bond, 1¼% Index-linked Treasury Gilt 2055, maturing on 22 November 2055. 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... (Redirected from 2055) (20th century - 21st century - 22nd century - other centuries) Definition In calendars based on the Christian Era or Common Era, such as the Gregorian calendar, the 21st century is the current century, as of this writing, lasting from 2000-2099. ...

Double-Dated Gilts

In the past, the UK government issued Double-Dated gilts, which have a range of maturity dates, such as 12% Exchequer Stock 2013-2017. There are three remaining in issue. The government can choose to redeem these gilts in whole, or in part, on any day between the first and final maturity date of the gilt, subject to giving no less than three months’ notice.

Undated Gilts

There exist eight undated gilts, which make up a very small amount of the UK government’s domestic debt. These gilts are very old, some of which date from the eighteenth century, such as Consols or War Loan. The redemption of these bonds remains at the discretion of the UK government, but because of their age, they all have low coupons, and there is therefore little incentive for the government to redeem them. Consols is a British government bond (gilt), dating originally from the 18th century. ...

Gilt Strips

Strips is the acronym for Separately Traded and Registered Principal Securities. Certain gilts can be "stripped" into their individual cash flows which can be traded separately as zero-coupon gilts, known as gilt strips. The UK gilt strip market started in 1997. 1997 (MCMXCVII) is a common year starting on Wednesday of the Gregorian calendar. ...

Maturity of Gilts

The maturity of gilts is defined by the DMO is as follows: short 0-7 years, medium 7-15 years and long 15 years+.

Gilts with a maturity of less than three years are also referred to as ‘ultra short’, while the new gilts issued in 2005 with a maturity of 50 years have been referred to as ‘ultra long’.