reverse yield gap
- noun the amount by which bond yield exceeds equity yield, or interest rates on loans exceed rental values as a percentage of the costs of properties
- noun the situation in which the returns on gilt-edged securities (i.e. government stock) are higher than on equities (ordinary shares). This can occur during periods of high inflation because equities are supposed to provide a hedge against inflation; under normal conditions the yield on equities is usually higher than that of gilts to compensate for the risk involved.