Gilt-Edged Securities

A gilt-edged security is a high-end bond issued by a government, such as that in the U.K. It gets its name because the bond is printed on paper that has, uh...gilded edges. Gilt-edged securities are ones that are high grade, but with low yields, thus having little-to-no-risk involved with them.

It’s traditionally offered by large corporations or governments as a means to “borrow” money. The gilt holder is paid a fixed amount bi-annually until the gilt matures, at which time the full amount is returned in full.

Gilt = gold...not what your mother does to you when you talk about not being able to make it to Thanksgiving this year.