UK Gilts Gain Renewed Investor Interest Amid High Rates and Tax Changes
UK government bonds, known as gilts, are experiencing a resurgence as conservative investors seek predictable returns in volatile markets. These debt instruments—backed by the British state's unbroken repayment record since 1694—offer coupon payments and principal protection at maturity.
Current economic conditions have amplified their appeal. Elevated interest rates and revised Capital Gains Tax exemptions now make gilts particularly attractive for portfolio diversification. The 'gilt-edged' designation reflects centuries of reliability, though modern investors increasingly balance them against higher-growth alternatives like digital assets.