Bonds

Discussion in 'SA6' started by ESmadja, Jul 5, 2010.

  1. ESmadja

    ESmadja Member

    What's exactly is the difference between a gilt and a debenture?

    Is it the seniority of the debt?
     
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    debentures and gilts

    Hi, Gilt ae government securities which are large and very marketable. Debentures (in the UK terminology) are a type of corporate bond. They are specific corporate bonds that have assets backing the loan - often mortgages (called mortgage debentures). Considerably smaller issues than gilts and much less marketable. Hope this heps.:)
     

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