2 bonds with returns 4 times higher than those of BTP Italia
If you want to invest with a time horizon similar to that of BTP Italia, here is a bond that expires only a few months before. It is the bond issued by Pemex, with repayment in February 2025. Pemex is a state-owned Mexican oil company. The bond (ISIN: XS0213101073) annually distributes a coupon of 5.5%, and can be purchased on the stock exchange’s MOT market at 98 cents. Which brings the yield to maturity close to 6% per annum.
The bond before the beginning of the March falls was quoted at 116 cents, then collapsed to 85 cents to recover up to current prices. It is not excluded that prices may return abundantly above par.
The Intek bond offers a 4.5% coupon
In February 2025, a bond issued in January by Intek also expires. Intek is a company with diversified shareholdings and headquarters in Foro Bonaparte in Milan. The bond offers a coupon of 4.5% annually and can currently be purchased on the stock exchange on the MOT for the price of 99 cents. This means that by purchasing and keeping the security to maturity, a gross annual return of approximately 5% can be obtained.
Note that the bond has an option call. What does it mean? That starting from the second year, Intek can decide to repay the obligation in advance. On February 24, before the collapse of the shares, the stock was priced at 102 cents. In March the violent fall brought it to 85 cents. But the next reaction was immediate and in mid-April it was already close to 98 cents.