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    The term bond has in the past been the generic term for fixed interest stocks with security (the borrower is 'bound' to repay capital). Gilts are therefore bonds. However, in recent times the term 'bond' has also been used in the name of some equity based investments, for example investment bond
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    ed interest stocks with security (the borrower is 'bound' to repay capital). Gilts are therefore bonds. However, in recent times the term 'bond' has also been used in the name of some equity based investments, for example investment bon
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    o repay capital). Gilts are therefore bonds. However, in recent times the term 'bond' has also been used in the name of some equity based investments, for example investment bon
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    f some equity based investments, for example investment bonds issued by insurance companies.

    Local and foreign government bonds

    It is possible to invest in these and they work like gilts. The only difference is that the risk of non payment is greater, so the yield is higher.

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