why buy them now and wait for increases – Corriere.it

Only four issues, placed between 2020 and the following year, looking to a “staggered” future. From eight years for the first placement to double maturity for the latest issue. In order, July 17, 2028, July 14, 2030, November 16, 2033, April 27, 2037. In the placement phase, eight, ten, twelve and sixteen years between the start date of entitlement to coupons and the redemption date, at natural maturity. Let’s talk about the Btp Futura. It would be enough to scroll through the market values ​​of this type of securities, for those who love to invest in low-cost financial instruments to be attracted by them. The rise in interest rates, caused by the increase in global inflation, has highlighted both a progressive increase in the value of the coupons of these BTPs, which represent their fundamental characteristicand their removal from the current levels of the coupons assigned to the issues of bond instruments, including government securities, placed in placement in recent months. For the furthest maturity, 2037, the market price is below 70, against a redemption value of 100. The prices of the other three BTPs with similar characteristics are higher, because the repayment date is less distant.

The most interesting options

The table shows the evolution of the value of the coupons that will be credited over the next few years. Compared to those of today they are certainly not competitive, but nothing excludes that, once this complex financial situation is overcome, largely characterized by the constant increase both in interest rates by central banks and, subsequently, in the yields of bond issuers and government bonds, the value of market returns will decrease again. It will be difficult to relive the phase of negative returns, but a new period in which the coupons serving the Btp Futura will be in line with those that the markets will already pay in about two and a half years. The assumptions about the future of the financial markets, including interest rates, are based on the growth prospects of the world economies, which are increasingly capable of influencing one another, as is evident even in this complex phase we are going through. The table shows, alongside the Btp Futura, both the classic fixed-coupon Btp and corporate bond issues, which can also be accessed with classic-sized investments, starting from one thousand euros. This situation is less and less available to those who love to invest in bonds, but do not have particularly high capital.

How to move

Introducing both government instruments and corporate bonds into the securities portfolio represents a strategy to follow, because it not only diversifies the type of issuer debtors, but also the yield to maturity to address. The degree of reliability, assigned by agencies specialized in debtor risk assessment, is of a good level, because it falls within the so-called investment grade, reserved for bond issues considered to carry low-level issuer risks. The percentage share to be attributed to the Btp Futura in the securities portfolio is strictly dependent on the strategy to be implemented. If short-term, their characteristics would be badly suited to the current market phase. If the strategy that the saver attributes to his own securities portfolio is aimed at the medium or long term, space should be reserved for this original form of investment. In particular, a weight ranging from 7.5 to 10% of the bond component of the securities portfolio could be dedicated to the 2033 and 2037 maturities, divided in half between the two issues. Purchased in this phase, in the light of market values, they would offer a gradual increase in the value of the investment, up to the repayment date at maturity.