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Definition

<p style="text-align: justify;">A <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">debt instrument</span> issued by a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">quasi-government organisation</span> such as a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">municipality</span> or <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">state-owned enterprise</span> (SOE). The term "gilt" is usually reserved for debt issued by the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">Treasury</span>. Obviously, semi-gilts are less secure than gilts and therefore generally have a higher effective <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">yield</span> to attract <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">investors</span>. If a quasi-government has a substantial amount of debt instruments trading in an <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">organised exchange</span> then the major <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">ratings agencies</span> such as <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">Moodys</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">Standard and Poors</span> and <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">Fitch</span> will give it a rating and monitor its reliability.</p>