Btp Valore, 0.5% premium and semi-annual coupons. How to invest
The new one arrives from 5 to 9 June Btp Value, a four-year government bond dedicated to retail. The coupons, half-yearly, will have one rate for the first two years and then another (higher) rate for the next two. The two rates will be communicated on 1 June (unless they rise). Hardly the “synthetic rate” annual (calculated on the two values) will be too far from that of a Classic btpof the same duration (currently around 3.45%).
But how “steep” the step is will still make a bit of a difference: if the second rate is significantly higher than the first, in fact, there will be an extra incentive to hold the bond until the end. Also, if i market rates will go down in the next few years (which is desirable, because it would mean that inflation is tamed) having more substantial coupon flows is a psychological advantage and perhaps an incentive to bond prices on the secondary.
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Il Btp Value provides for a loyalty bonus of 0.5% of the invested capital for savers who will keep it until maturity. The six-monthly nominal coupons will be calculated on the basis of pre-established rates that increase over time (the so-called step-up mechanism): fixed for the first two years, which increases for the remaining two years of the security’s life.
The series of guaranteed minimum coupon rates of the first issue will be communicated to the public on Thursday 1st June, while i definitive coupon rates they will be announced at the closing of the placement on 9 June and cannot in any case be lower than the guaranteed minimum coupon rates.
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