Co-founder of Affari Miei
April 11, 2024
They return BTP Value with the new issue scheduled for maggio 2024. This investment option, highly appreciated in its previous editions, offers some features highly appreciated by savers who deserve a detailed evaluation, considering both the benefits and potential risks.
What are the returns expected? It suits invest in BTPs May value? We will try to answer briefly in this article in which I will not fail, as usual, to make known my opinions.
Let’s start!
This article talks about:
A story of continued success
Since their debut, i BTP Value have attracted the attention of numerous small savers thanks to favorable conditions and attractive returns. The next issue, from 6 to 10 Mayis no exception, offering a improved loyalty rewardfrom 0.7% to 0,8%for those who hold the title until maturity.
Characteristics and returns of the BTP Value
This financial instrument has a duration of six years and provides quarterly coupons with increasing interest rates, thanks to a “step up” yield structure.
At the moment we do not know the returns which will be announced, together with the ISIN code, on May 3rd.
We can do some forecasts relatively reliable: as I am writing, the yield on BTPs expiring in six years (2030) on the secondary market is 3.14% net.
Generally the MEF on new issues is a little more generous so we can expect that the next BTP Valore will have a total yield to maturity, including the loyalty bonus, between 3.7% and 3.9% gross which opens at a tasso between 3,23% and the 3,41% net.
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A security for small savers
The possibility of subscribing to the security without commissions and with a minimum investment of 1.000 euro makes the BTP Valore particularly accessible to a large audience of investors, including those with less capital. Which is why, as usual, there will be a lot of talk about this topic in the media and probably also in your circle of friends and acquaintances.
Purchase methods
The BTP Valore can be easily purchased through your home banking, in banks or at post offices. This process has been simplified to ensure that every small saver can access the investment without complications.
Tax treatment
One of the major attractions of the BTP Valore is the reduced taxation 12,5% on coupons and loyalty bonuses. The title is also exempt from inheritance taxes and, starting from 2024, excluded from the calculation of the ISEE for sums up to 50,000 euros, making it even more advantageous from a tax perspective.
Is investing in BTP Valore risky?
Investing in BTP Valore is not without risks: changes in interest rates can reduce the value of the security on the secondary market, particularly in a context of economic instability. It is essential to understand that you may face losses if you decide to sell the stock before it matures.
In addition to interest rate risks, changes in national economic and financial policy can directly affect the performance of these instruments.
In addition to these technical aspects, there is the country risk which is a bit of a bugaboo when it comes to Italy. In recent years, the Italian government has taken a liking to issuing BTPs to overcome a series of historical problems, linked above all to international credibility, which our country continues to carry with it. If you want to learn more I recommend you watch this video:
What should be done? My opinions
First of all, before committing yourself even mentally to an investment in BTP Valore, a careful and informed evaluation is essential which cannot currently be complete because we do not yet know all the details of the security in question.
Promising returns and tax benefits, however, must be balanced with a thorough understanding of financial risks.
If you have already bought BTPs or want to know more about the risks involved, we have prepared a complete guide with a detailed analysis of the risks associated with BTPs, I invite you to download our free report. This document is essential for making an informed and confident decision. Don’t miss the opportunity to learn more: download the report here.
This article will be updated in the coming weeks as we learn more details about this new BTP.
If you would like to delve deeper into the general aspects related to asset management, I leave you with some free resources that will surely be useful to you:
Good continuation on Affari Miei.
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