Conventional gilts are loans to the UK government in return for a fixed rate of interest (coupon payments) and the return of capital on the maturity (redemption) date. There is no risk of default on any gilt, because they are guaranteed by the UK government. As billions of pounds trade every day in the gilt market, investors can buy or sell gilts without concerns of liquidity. The settlement period is one working day.
Click to enlarge
Five year percentage change in All Gilt Stocks, source Bloomberg.