consols
Definition
- Noun (plural only):
- Consolidated annuities: "Consols" refers to a type of perpetual government bond issued by the British government, first introduced in 1751. These bonds pay a fixed annual interest (coupon) but have no maturity date, meaning the principal is never repaid; they are a form of undated debt.
Usage Examples
- (These bonds were considered low-risk due to government backing.)
- (The word "consols" is a shortening of "consolidated annuities.")
Advanced Usage
"Consols yield": The annual interest rate paid on these bonds, often used as a benchmark for risk-free returns in historical financial analysis.
- The consols yield fell to 3% during the Victorian era, reflecting investor confidence. (The interest rate on these bonds dropped due to high demand.)
"Buying consols": In historical contexts, this phrase meant acquiring a perpetual income stream rather than a redeemable asset.
- He inherited a portfolio of consols that provided a steady annual income. (The bonds paid interest indefinitely.)
Variants and Related Words
Consolidated annuities (n): The full name from which "consols" is derived.
- The consolidated annuities were created to simplify government debt management. (The official term for these bonds.)
Undated bond (n): A bond with no fixed maturity date, similar to consols.
- Consols are a classic example of an undated bond. (A bond that never matures.)
Synonyms
- Perpetual bond: a bond with no maturity date.
- Government annuity: a fixed annual payment from the government.
Related Idioms
- "As safe as consols": An old-fashioned expression meaning extremely secure or low-risk, reflecting the historical reliability of British government bonds.
- That investment is as safe as consols — you can't lose your money. (Very safe, akin to government-backed bonds.)