with increasing coupons, it will last four years – Corriere.it

It’s called Btp Valore, uA new family of government bonds, announced on 8 May by the Ministry of the Economy and Finance. aimed at the retail market, i.e. individual savers and the like, says a note from the dicastery. The first BTP Value will be issued from Monday 5 June to Friday 9 (until 1 pm), unless the placement is terminated early. It will have a duration of four years and a loyalty bonus for savers who keep it in their portfolio until maturity. The coupons will be periodic and calculated on the basis of fixed and increasing rates, says the Treasury Ministry website. Nothing is known about the rates yet: They will be communicated on June 1, together with the Isin code that identifies the securitysays the ministry.

Minimum threshold: one thousand euros

The Btp Valore will be taxed on the yield at 12.5%, like other government bonds, e it can be purchased without commission at the bank, at the post office if you have a securities account or with your own home banking service. The minimum investment of one thousand euros and the dealer banks that will take care of their placement on the Mot, Borsa Italiana’s electronic market for bonds and government securities, are Intesa Sanpaolo and Unicredit. All official communications on the new Btp Valore will be made available on the website of the Mef (www.mef.gov.it) and the Department of the Treasury in the Public Debt section, says the note in Via XX Settembre.

The differences

What is the difference between this Btp and the traditional ones? That the coupons will, in fact, be increasing. There will not be a single rate, but a progression, with a combined rate. But the information is not yet available either on the reference rate (arriving, in fact, only on June 1st) or on the growth pattern. of the yield. The enrichment of the range of tools for retail consumers is welcome – comments Rocco Bove, head of the Bond sector in Kairos -. the four-year maturity, neither too short nor too long, is also interesting. But it is still too early to make any considerations regarding financial attractiveness of the title. The rate offered and the coupon determination mechanism will be evaluated.

How much do others make

As a mere indication, the current rate of the four-year BTP (maturity 2027) at around 3.56% gross. The three-year BTP is 3.45% and the five-year one is 3.64%. These are values ​​that compare with the 4.22% of the 10-year BTP, but today they cannot be taken as a reference for the Btp Valore which will have a different yield calculation formula.