BTP Value, From Yield to Loyalty Bonuses: How Much Is It Worth?

BTP Value, From Yield to Loyalty Bonuses: How Much Is It Worth?

Engines are heated for placement of btp price, a new issue of government bonds designed for retail customers (small savers). A placement was announced by MEF at the beginning of the month, which follows a highly successful placement recorded in July. Meanwhile, MEF has announced the amount of loyalty bonus, i.e. additional returns to those who hold a security till maturity.

Loyalty Bonuses and Quarterly Coupons

MEF announced that Ultimate Extra Loyalty Reward Is equal to 0,5% of invested capital And it will be recognized for all who hold the title for all five years, until its final expiration. An additional thing that guarantees the stability of the resources collected by the treasury for the entire five-year period.

This additional produce will be added to The usual coupons, with one big news: quarterly payments Of interests. Display The minimum, like previous issues, will be pre-established for the first 3 years and will increase over the next 2 years of the life of the security based on the so-called step-up mechanism,

The minimum guaranteed coupon rates will be communicated on September 29, while the fixed rates will be announced at the conclusion of the placement and the minimum guaranteed coupon rates cannot be lower in any case.

But is it worth it?

One may wonder whether it is worth purchasing BTP Valor or not. Certainly a convenience for a prudent investor, if judged on the basis of low risk of government bonds, although some experts have recently highlighted the increasing risk of Italian BTPs.

But in any case we will have to wait until then communication of minimum yield Guaranteed for next October 6th. Bearing in mind that the ECB’s latest rate hike took the cost of money to 4.5% and deposit rates to 4%, experts speculate minimum return of 4-4.2%, Considering that even the safest deposit accounts for a prudent investor have reached yields of over 4%.

When and where to buy it

BTP Velor’s 2nd place Starts on 2nd October and ends on 6th October 2023, It should be remembered that the title will be kept on MOT market of the Italian Stock Exchange and will therefore be able to be booked through your home bankingIf enabled for online trading functions.

Alternatively, less experienced savers can be turned to your bank or post officeAnd where you have a current account and a security deposit account.

The security will be placed at par (price equal to 100) without any hassles or commission. The minimum investment is equal to 1,000 euros and no maximum limit will be imposed to ensure full satisfaction of orders, unless the Ministry has the right to close the issue early.

There is preferential tax on BTP

normal expected preferential taxation pfor government bonds equal to 12,5% and exemption from inheritance taxes on coupons and loyalty bonuses.





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