Glossary

32 terms · the plain-English meaning of every figure on the site

The same plain-English sentences behind every annotated column — shown here as one browsable list rather than a hover at a time. New to GiltIQ? The Help guide walks through the whole site.

Gilt vocabulary

Coupon: The fixed interest paid each year, per £100 of nominal value. See it on the conventional gilt list

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Why UK gilts earn a place in a portfolio

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Clean price: The price of the gilt itself, before the interest built up since the last coupon. See it on the conventional gilt list

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How an index-linked gilt keeps pace with inflation

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Accrued interest: Interest built up since the last coupon, and the number of days it covers. See it on the conventional gilt list

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How an index-linked gilt keeps pace with inflation

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Dirty price: The clean price plus the accrued interest — what a buyer actually pays. See it on the conventional gilt list

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How an index-linked gilt keeps pace with inflation

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Index ratio: For an index-linked gilt, how far prices have risen since it was issued; it scales the coupon and the redemption alike. See it on the index-linked gilt list

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How an index-linked gilt keeps pace with inflation

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Real yield: The return after the inflation the gilt is priced for, rather than the cash return. Quoted annually compounded, like the gross yield. See it on the index-linked gilt list

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How an index-linked gilt keeps pace with inflation

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Net real yield: The real yield after income tax on the coupons. See it on the post-tax yield comparison

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Reading the gilt market before you commit

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Impl. RPI: The annual inflation the gilt's real and nominal yields imply — what the market is pricing in. See it on the implied RPI (inflation) curve

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How an index-linked gilt keeps pace with inflation

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Trend: How this gilt's yield has moved over the last two months. The twelve-month view is on the gilt's history page. See it on the conventional gilt list
Mod. dur.: How much the price moves when the yield moves by 1%, in years. See it on the conventional gilt list
Gross yield: The yield if you hold the gilt to maturity, with coupons reinvested at the same rate, compounded once a year. See it on the conventional gilt list

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Building a bond ladder for income you can plan on

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DMO yield: The same yield under the UK Debt Management Office's market convention: coupons twice a year, counted on actual days. See it on the conventional gilt list

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Building a bond ladder for income you can plan on

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Net redemption yield: The redemption yield after income tax on the coupons, compounded once a year like the gross yield. See it on the post-tax yield comparison

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Reading the gilt market before you commit

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NPV: Each flow discounted back at the gilt's gross redemption yield — the real yield for an index-linked gilt — so the total equals the dirty price per £100 nominal. See it on the conventional gilt list
NPV (par curve): Each flow discounted at the report's fitted par curve at its own term, in the same twice-a-year convention as the NPV column. An estimate from the curve, not a contractual amount. See it on the gilt yield curve
NPV (zero-coupon): Each flow discounted at the report's bootstrapped zero-coupon curve at its own term. An estimate from the curve, not a contractual amount. See it on the gilt yield curve
Inflation: The annual inflation assumed for an index-linked gilt's cash flows beyond the latest published RPI. See it on the index-linked gilt list
Income per £100: The annual coupon paid on £100 of face value. See it on the coupon income calendar
est.: An estimate, not a contractual amount: an index-linked gilt's coupon is the real coupon scaled by the latest published index ratio, with no further inflation assumed. See it on the index-linked gilt list
Net income (20%): Coupon income per £100 after 20% basic-rate income tax. See it on the post-tax yield comparison

See this explained — 7:28

Why UK gilts earn a place in a portfolio

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Since the previous close: A rising yield means a falling price: these gilts got cheaper. See it on the market insights

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What a rising yield does to a bond fund

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Since the previous close: A falling yield means a rising price: these gilts got dearer. See it on the market insights

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What a rising yield does to a bond fund

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IRR since inception: The internal rate of return on the actual cash flows in and out of the portfolios. See it on your gilt portfolios
Real. P&L: Gain or loss on positions already sold. See it on your gilt portfolios
Change: How far this gilt's yield has moved since the previous close. See it on the conventional gilt list

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Why UK gilts earn a place in a portfolio

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The bond ladder's vocabulary

Income target: Build a ladder that pays a target income each year. See it on the bond ladder builder
Lump sum: Build a ladder from a starting lump sum. See it on the bond ladder builder
Length: Number of years the ladder runs for. See it on the bond ladder builder
Income: The target inflation-adjusted income the ladder should pay each year. See it on the bond ladder builder
Lump sum: The lump sum you have to invest today. See it on the bond ladder builder
Inflation: Expected inflation over the period. See it on the bond ladder builder
Tax: Your marginal income tax rate, applied to the rungs' coupons. See it on the bond ladder builder