‘Gilt’ was not a term originally used to describe government borrowing. Indeed, it wasn’t until more than 150 years after King William III raised £1.2 million, via the newly-created Bank of England, with which to wage war against France in 1694, recognised as the first example of gilt-edged borrowing, that they became commonly known as gilts.
By the nineteenth century, the debt security certificates issued by the government had gilded edges, an appropriate decorative touch, for Britain is one of a tiny band of nations never to have defaulted on a debt.
While a gilt’s title may appear slightly more daunting than, say, ‘instant access account’, it does, in fact, provide a detailed description of what it offers: think of it as describing what it says on the tin.