Bank of Italy warns savers, here are the “dangerous” bonds
Bank of Italy sound the alarm. With a press release, the Istituto di via Nazionale warned savers against excessive amounts certificates, securitizations e you AT1 bondsamong the riskiest bonds.
I bond AT1 are debt securities issued directly by banks. They have no expiration date and therefore can be assimilated to perpetual bonds. They have a high return but also have a high risk of loss in case of adverse events. In fact, their value can go to zero in extreme cases, as happened a Swiss credit.
According to Bank of ItalyItalian households hold over 50 billion of these securities and others complex bonds. In 2022 alone, the total amount rose by 11 billion.
Fortunately, the overall value of these risky debt securities in the Italian wallets it represents only 1% of the entire household wealth. However, the problem should not be underestimated. The private investorsas he writes Stock market projectionsthey should check whether they have invested in these stocks.
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