| A stock of high quality companies or countries. More specifically, gilts are fixed income or index-linked bonds issued by the UK Government. The purchaser of a gilt is lending the government money in return for regular interest payments and the promise that the nominal value of the gilt will be repaid (redeemed) on a specified later date. It is not necessary to hold a gilt until its redemption as, like shares, they are tradable instruments their prices move in line with supply and demand, and fluctuations in the main influences on the market such as future interest rates and inflation.
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