Index Linked Gilts

Index Linked Gilts - Investors Intelligence UK

Index Linked Gilts

Posted by Brune Amite on Monday, 9 September, 2019 09:22:53

A set based on yields on UK government bonds (also known as gilts). This includes nominal and real yield curves and the implied inflation term structure for the UK. A set based on sterling interbank rates (LIBOR) and on instruments linked to LIBOR (short sterling futures, forward rate agreements and LIBOR-based interest rate swaps).

The first known inflation-indexed bond was issued by the Massachusetts Bay Company in 1780. The market has grown dramatically since the British government began issuing inflation-linked Gilts in 1981. As of 2008, government-issued inflation-linked bonds comprise over $1.5 trillion of the international debt market.

Like conventional gilts, index-linked gilts pay coupons which are initially set in line with market interest rates. (Recently, real market interest yields for many (at times, all) index-linked gilts have been negative; but the coupons for new issues have been constrained to be at least +0.125%.)

iShares £ Index-Linked Gilts UCITS ETF (GBP) The figures shown relate to past performance. Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product or strategy.

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Yields shown for Index Linked Gilts are based on an assumed inflation rate of 3% ( a calculation method known as a "money yield"). Please note both the coupons and final payment for index linked gilts are not fixed and will be determined by the RPI. NB: Click on column headers to sort instruments by coupon, life, price and yield.