Consol (currency)

Consols (consolidated annuities) are British government bonds, most commonly used in the late 19th and early 20th century, when they constituted the major part of the British national debt. Although consols were mentioned in the 19th Century novel "David Copperfield" by Charles Dickens, they still trade today, but are a rather small percentage of the total treasury bond landscape and total Government debt. An act of Parliament would be required to retire this debt, which is rather unlikely, and hence they continue to exist.

The establishment of the Bank of England and the national debt in the 17th century produced a confusing variety of stocks. Prime Minister Henry Pelham attempted to simplify the situation in 1751 by consolidating existing stocks. Named consols, these consolidated stocks had a fixed rate of interest payable by the Bank, with premiums paid if market conditions justified them.

Consols bear no maturity date and are redeemable on demand by the Government. They are also known as perpetual bonds.