Home » BTp Value February 2024, Here is the BTp Coupon: Is it worth it?

BTp Value February 2024, Here is the BTp Coupon: Is it worth it?

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BTp Value February 2024, Here is the BTp Coupon: Is it worth it?

Co-founder of Affari Miei

February 23, 2024

It has just been revealed coupon of the BTp Value February 2024.

There had been some in recent days forecasts on what the rate could be and therefore how much this instrument could yield. We here on Affari Miei have also hypothesized what the interest rate relating to this could be BTP Value.

Today we can finally focus on one of the most important things when talking about BTp, namely the coupon, which in the end is also the element that most attracts investors investors towards these tools.

Keep reading!

This article talks about:

BTp Value February 2024: Here is the Coupon!

Here the minimum yields for the BTP Valore February 2024 have just been communicated:

3,25% for the 1st, 2nd and 3rd year;
4% for the 4th, 5th and 6th year.

At the end of the placement, i. will be announced definitive coupon rates which may be confirmed or revised upwards.

Also for this issue will be paid the coupons every three months, calculated on the basis of pre-established rates that increase over time (i.e. on the basis of the so-called 3+3 year step-up mechanism). Simply put: in the first three years there will be a rate of return and in the last 3 a higher rate.

I yields they do not differ much from our predictions.

Issuance and duration

The issuance of BTP Value is aimed exclusively at individual investors and will take place from Monday 26 February to Friday 1 March 2024 (until 1pm), unless closed early, through the MOT, the electronic regulated market managed by Borsa Italiana.

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It’s about the first issue of 2024.

As we have just said, the distribution will take place in 5 working days.

The ISIN code for this instrument will be IT0005583478.

The title has a duration of 6 years and a loyalty bonus for savers equal to 0.7% who will hold it until maturity.

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What are the risks of this investment?

After seeing all the characteristics of the new government bond, let’s try to understand what the risks which we would face if we chose this instrument because every investment has an intrinsic risk.

The risks of investing in BTPs are the following:

Volatility: it can increase or decrease in relation to the duration of the investment period: if interest rates increase, then the price of previously issued BTp decreases, if interest rates decrease, then the price of previously issued BTp increases;
Issuer risk: refers to the fact that Italy could face the default or to a debt restructuring. Of course, perhaps this is a rather unlikely risk, but in any case it should not be underestimated because it could have repercussions on your investment with a partial or worse, total loss of the invested capital.

So mine advise is to reflect and think carefully about your choice, taking into consideration all the possibilities and above all trying to be aware of these risks, especially because it is often mistakenly believed that the BTp is a completely safe investment, but this is not the case.

Is it worth investing in the BTp Value February 2024?

So is it worth investing in the BTp Valore February 2024 or not?

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This is the question we all ask ourselves. But I’ll try to ask you a question: is it worth it compared to what?

Convenience is both relative That absolute:

Relative: we must compare this product with other similar products, such as another BTP Value;
Absolute: in this case, however, a much broader reasoning must be made.

I can tell you that the BTp Valore is a very normal government bond issued in a historical phase in which bond market yields are growing compared to a few years ago, so from this point of view it could seem like a good choice.

If we instead have to think in a broad sense about absolute convenience, we need to think bigger: you have to ask yourself whether you need to insert another BTP in your wallet.

I don’t feel like giving you absolute advice because, not knowing your situation and your previous investments, I don’t have enough information available: if you already have a well diversified portfolio maybe putting in another similar tool isn’t a great idea.

If you want to know more about investing, I invite you to read this article in which I better clarify the key points of how money is managed.

I already told you about it diversification, so my advice is to always reflect on this aspect.

If you are looking for resources on the topic, here are some articles that may interest you:

If you are looking for resources on the topic, here are some articles that may interest you:

If you’re looking to start your own investment path you can read here:

Happy continuation!

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