Gilts

When the United States Treasury issues bonds, we call them “treasury bonds.” When the British government issues bonds, they’re called “gilts,” which is a lot snazzier-sounding, and comes from the fact that old British bond certificates used to have fancy gilded edges.

Gilts, like treasury bonds, are considered very low-risk investments. They’re backed by the government, after all, which means the chances of default are pretty slim. Investors like gilts because, like the tortoise of fable fame, their earnings progress is slow, steady, and stable. This makes them a hot choice for insurance companies and pension funds—financial institutions that are big on stability and predictability, but are maybe less concerned with huge short-term gains.