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If you think 150 years is a while, wait to you hear about perpetual bonds. The United Kingdom still pays out interest, four times annually, on bonds which pred

by patio11 14y ago

If you think 150 years is a while, wait to you hear about perpetual bonds. The United Kingdom still pays out interest, four times annually, on bonds which predate the existence of the United States of America. (They could theoretically call most of them, but owing to unilateral changes in the terms over the years, the coupon is so low as to make calling them a losing proposition as opposed to paying down more conventional debts of the nation.)

ghshephard 14y ago
Citation: http://en.wikipedia.org/wiki/Consols http://en.wikipedia.org/wiki/Consols (to save others the search) First issued in 1751. "Consols still exist today: in their current form as 2½% Consolidated Stock (1923 or after), they remain a small part of the UK Government’s debt portfolio. As the bond has a low coupon, there is little incentive for the government to redeem it. Unlike most gilts, which pay coupons semi-annually, Consols pay coupons four times a year because of their age. As a result of their uncertain redemption dates, they are typically treated as a perpetual bond. ... Given their long history, references to Consols can be found in many places, including literature such as Pride and Prejudice by Jane Austen, David Copperfield by Charles Dickens, Howards End by E. M. Forster, Vanity Fair by William Makepeace Thackeray, Of Human Bondage by William Somerset Maugham and The Forsyte Saga by John Galsworthy and in economics."
apaprocki 14y ago
The oldest Gilt appears to be ISIN GB0000436070, issued in 1853: ISS'D 1853. CALLABLE FROM 1/5/1905 @ PAR W/30 DAYS NOTICE. £8,093,266 CONVERTED INTO 4½% WAR LOANS. DAYCOUNT CHG TO ACT/ACT EFF 11/1/98. The South Sea Bubble crisis happened in 1720, but it appears the company continued to manage the national debt until the 1850s, which corresponds nicely with this bond.

by patio11 14y ago

ghshephard 14y ago

Citation: http://en.wikipedia.org/wiki/Consols http://en.wikipedia.org/wiki/Consols (to save others the search) First issued in 1751. "Consols still exist today: in their current form as 2½% Consolidated Stock (1923 or after), they remain a small part of the UK Government’s debt portfolio. As the bond has a low coupon, there is little incentive for the government to redeem it. Unlike most gilts, which pay coupons semi-annually, Consols pay coupons four times a year because of their age. As a result of their uncertain redemption dates, they are typically treated as a perpetual bond. ... Given their long history, references to Consols can be found in many places, including literature such as Pride and Prejudice by Jane Austen, David Copperfield by Charles Dickens, Howards End by E. M. Forster, Vanity Fair by William Makepeace Thackeray, Of Human Bondage by William Somerset Maugham and The Forsyte Saga by John Galsworthy and in economics."

apaprocki 14y ago

The oldest Gilt appears to be ISIN GB0000436070, issued in 1853: ISS'D 1853. CALLABLE FROM 1/5/1905 @ PAR W/30 DAYS NOTICE. £8,093,266 CONVERTED INTO 4½% WAR LOANS. DAYCOUNT CHG TO ACT/ACT EFF 11/1/98. The South Sea Bubble crisis happened in 1720, but it appears the company continued to manage the national debt until the 1850s, which corresponds nicely with this bond.