how to get a yield above 4% – Corriere.it
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Eni’s bond
Eleven years later, Eni is once again launching a bond dedicated only to the Italian public and for the first time linked to sustainability objectives.The bonds for one billion euros will be offered from 16 January next and will have a duration of 5 years. If there is a request that goes beyond the offer, the amount could be increased up to 2 billion euros. The minimum subscribable lot of 2,000 euros (equal to 2 bonds), with possible increases equal to at least 1 bond, for a nominal value of 1,000 euros each. The capital, explains the energy group, will be repaid in full when the loan expires (February 10, 2028). The bonds will pay the subscribers, annually and in arrears, interest at a fixed rate which cannot be lower than 4.30%. Adherence to the offer does not include any expense or subscription commission. This is a very interesting issue both for the absolute level of the proposed coupon, approximately 90 basis points higher than the BTP of the same duration and for the rating of the issuer. Furthermore, among the competing oil companies, Eni is the one with the best green profile in terms of reduction of direct and indirect CO2 emissions, explains Nicola Maino, investment manager of Valori Asset Management, an independent asset management company based in Luxembourg.
Pirelli, Enel and government bonds
I remember that in addition to Eni, they also offer an excellent risk/return profile the 5-year bonds launched by Pirelli, with a 4.25% coupon, currently trading slightly above par. The limit of issues such as these which are intended for institutional investors, given the minimum denomination of 100 thousand euros. Enel has also just ventured into new “hybrid” bond issues (for professional operators) with yields of 6.4% and 6.6% respectively on maturities of 5.5 and 8.5 years. High coupon issues like these shouldn’t make us forget the convenience of government bonds, starting with 10-year BTPs, which currently offer a yield of 4.05% and which have excellent potential for significant cap gainsital if inflation, and consequently also long-term rates, were to fall faster than expected, concludes Maino. But short-term bonds will pursue long-term yields, the yield of which is more directly correlated to the (increasing) changes in rates decided by the ECB. news a few days ago that one-year BOTs have exceeded the 3% yield threshold, as has not happened since 2012. The long winter of zero yields on the bond and fixed income markets is now a thing of the (recent) past .
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