Gilts & Bonds

Fixed interest securities for generating income

Your Selftrade account enables you to trade in UK Government securities (Gilts) and a wide range of corporate bonds.

Often favoured by investors looking for income, or protection against inflation, they are priced in pounds and traded in 'blocks' of £100 nominal value. Gilts and Bonds are generally viewed as being of lower risk than shares or funds, although their prices can also fall as well as rise and investors should consider the credit worthiness of the issuer before trading.

Our comprehensive Fixed Income Investor microsite will help you learn more about Bonds, show you what's available and provide you with news and comment to keep you up-to-date.

Gilts

Gilts or Gilt-Edged securities to give them their full title, are issued by the UK government to fund its expenditure – effectively you are lending them your money.

Because no UK government has ever defaulted on repaying these loans on time, they are considered to be safer investments, although of course past performance is not a guide to future performance.

In exchange for lending them your money, you get interest – either at a fixed rate or linked to inflation depending on the particular gilt you buy. And in some cases you can be sure of capital growth too, for some gilts can be bought for less than their final par value.

Gilt Selector >

Bonds

Bonds are issued by local authorities and companies as a way of raising finance. Like Gilts, they are repaid at a future date and carry a rate of interest that is either fixed or index-linked to inflation.

Bonds are often used for income generation and are a core portfolio constituent. Because of the fixed interest nature of these products, their price reflects the outlook for interest rates and inflation. As well as buying individual Bonds, you can invest in them through actively-managed Funds or passive Bond ETFs, which aim to mirror the performance of bond indices.

Sterling Bond Indices >

What's available

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