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Bonds & Gilts

Issuing bonds and gilts is a way for companies or governments to raise capital. By investing in a bond or gilt, you are lending money to a company or government for a fixed period in return for a fixed rate of interest, although this can vary depending on the bond or gilt. They carry a nominal value that will be paid back to the holder on a stated date (the Redemption Date).

What are the risks with bonds and gilts?

Traded on the open market, bond and gilt prices are constantly changing. A company or government’s stability can affect the price so, while safer than equities, bonds and gilts carry an element of risk and you may lose some (or all) of your initial investment.

Bonds and gilts are not covered by the Financial Services Compensation Scheme (FSCS) and repayment of bonds is not guaranteed if a company fails. Economic factors can affect the market price and if interest rates rise, the capital value of the asset will fall – this is known as capital erosion.

Trading bonds and gilts

Bonds and gilts can only be traded through our telephone dealing service. To place a trade please call 0345 606 0560. (Calls will be monitored and recorded. Call costs may vary depending on your service provider). If you need to call us from abroad, you can call us on +44 113 279 7518.