Not just BTPs, how to invest with other bonds: Emerging, corporate and high-yield
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The wallet for families
A leap forward for returns. And a game between Btp, more and more numerous, also in terms of issues dedicated in particular to families. Italians have looked at them with an eye in the last six months as an investment tool. Today an Italian government bond, short, at one year, yields more than 3%. Extending the times up to ten years, the 4% is exceeded.
A figure which, contextualized in a scenario of inflation at 7-8%, is weak. But that must be put into perspective with respect to two virtuous mechanisms. The first: by investing, the bite of inflation is “cut” about in half. The second: if, as expected, rates will drop sooner or later, the bonds purchased today with these coupons will be a treasure trove for the future. Because those who have them in their pockets will continue to collect high flows. A reasoning, the latter, which does not apply to the Btp Italia which are linked to inflation. But BTPs aren’t the only bonds being revived. mechanism of rising rates has lit a beacon on all bonds.
The And then, How to understand which are the most suitable for the historical moment? Over time, the BTP €i has been added to the classic BTP with a fixed coupon, offered with different durations, with coupons and principal whose point of reference is the evolution of inflation in the Eurozone, and then the BTP Italia, whose point of reference, rather than inflation in the Eurozone, is the increase in the cost of living in Italy. Recently there is the Btp Futura placed in the pandemic phase, whose characteristic is to offer coupons that increase over the years and lastly the Btp Valore which, in the face of a fairly close deadline, has two different coupon levels. For the sake of completeness, the Btp Green are also to be mentioned, issued to finance public expenditure whose objective is the protection of the environment and the fight against climate change.
LOOK THE INFOGRAPHIC WITH THE COMPARISON BETWEEN BONDSHERE
Jun 12, 2023
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