RE: DON'T FORGET2 Sep 2025 15:25
Bhants.
I know many things about many things, but Gilts I'm still looking into.
From my understanding. When you buy the Gilt for lets say £100, the rate at which you buy is fixed. BUT... The Value of that Gilt then changes on the secondary market so although you bought it for £100, a year later it might only be worth £95. BUT as it's a 10/20/30 year Gilt it doesn't matter about the price for the resale because you're not selling it. You would get the 4%/5% etc. for the term of the Gilt.
What I don't know is... Is Interest paid monthly, yearly, or at the end of the Gilt. Does the secondary market price recover when it gets close to the Maturity date i.e. £100 down to £95 back up to £100 when it's maturing and what is the actual protection of them. I'm aware they are government backed, but does that mean they are 100% guaranteed unless the government actually declares bankruptcy / WW3.....