UK Gilts vs Stocks
Financial World News -toimitus · Koulutuksellinen selitys · Miten haemme korot
Gilts offer contractual coupons; equities offer residual profits. See how risk, income and drawdowns differ.
Oppaan täysi briefing on englanniksi. Otsikko, tiivistelmä ja navigointi ovat kielelläsi, jotta voit päättää, luetko eteenpäin.
UK Gilts vs Stocks — the mechanics
Equities can grow with the economy; gilts cannot exceed their coupon-and-par contract unless you trade the price. Many portfolios use gilts to dampen equity volatility, not to replace it.
A gilt coupon is a contract. A dividend is a residual. FTSE 100 earnings can grow; a 4¼% 2034 gilt cannot pay more than 4.25% of par per year plus par at the end.
In a growth shock, gilts often rally as Bank Rate cuts are priced. In an inflation shock — 2021–22 — both long gilts and equities can fall together. Correlation is a regime.
Using gilts to ‘replace’ equities for return will usually disappoint over decades. Using them to match a known sterling bill (a house purchase in 2029, a pension in payment) is the job they are built for.
Official sources (UK Gilts)
Primary statistics and prospectuses for UK Gilts are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Keskeiset huomiot
- A gilt coupon is a contract.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
UKK
- Do gilts always rise when stocks fall?
- Not always. In inflation shocks both can fall together, as in 2022. Correlation is a regime, not a law.