the reasons for a saver help to understand the success of the issue – Business Insider Italia


The success of BTP Italy, whose placement ended on May 21, was in the air from day one but perhaps not everyone would have imagined a real historical record for the issue. And so it was: after the 14 billion raised from 18 to 20 May among the small savers, the so-called retail, with the 8.3 billion allocated on the morning of 21 May to institutional investors, the issue of Btp Italia reached 22.3 billion. Having exceeded the 22.27 billion raised in November 2013, this is precisely a historical record for the tool launched in 2012 and now in its sixteenth edition. The 22.3 billion raised among investors will go to finance part of the expenses incurred in the fight against Covid-19 by Sars-Cov-2. Suffice it to say that the only revival decree, in fact, weighs on public debt for 55 billion.

But what are the reasons for this success? I., a 64-year-old saver who invested € 5,000 in the “anti Covid” BTP Italy, tells Business Insider why he did it: “To begin with, in my own small way, I liked the idea of ​​doing something to support my country in such a great emergency. But I can’t confess that too the performance of the product seemed very interesting to me and the same goes for the expected loyalty bonus, in addition to the fact that capital gains and coupons on government bonds enjoy tax relief ” equal to 12.5% ​​against that of 26% in force on other financial income.

It must be remembered that the Btp Italia offers a guaranteed minimum real annual return of 1.40% in turn parameterized to Italian inflation as measured by the Istat index of consumer prices for the families of workers and employees (Foi index) net of tobacco. In addition, there is a return on capital of 8 per thousand gross, or 0.8% gross, as a loyalty bonus if the security is held in the portfolio until maturity in 2025.

Just to make a comparison with the previous edition of the Btp Italy, the one dating back to the month of October 2019, which seems like a geological era shows that in the middle there is the coronavirus, the minimum guaranteed annual return was 0.65%, or less than half, and the loyalty bonus of 4 per thousand gross if it had been decided to keep the instrument in the portfolio until the expiration of 2027. It is clear therefore that, in full emergency Covid-19 and with a spread between Italy and Germany that has gone back to raising its head compared to last autumn, the government of Giuseppe Conte, and in particular the Ministry of Economy led by Roberto Gualtieri, has considered that having to entice investors with attractive returns and loyalty rewards.

More generally, as already highlighted by Business Insider, Btp Italia provides the investor protection against the increase in the level of Italian prices. If you think that inflation will gallop in the future, it makes sense to invest in this tool. “I – explains I. – I decided to invest in this BTP also because, despite the economic forecasts of many, I do not exclude that the social distancing practiced even after the closure of the activities in Italy and in other countries will lead to a general rise in prices. The highest price of the coffee cup at the bar is only the first in a long series, in my opinion “.

Read also: Btp Italia to cover expenses from Covid, some reasons to buy it and some others to let it go

“The new five-year BTP linked to inflation – comments Fabrizio Quirighetti, investment manager (ie) of Decalia Asset Management – will have a minimum real return of 1.4%, with an attractive yield bonus of 20 basis points compared to existing and comparable BTP emissions, equal to approximately 1.20 percent. What is very interesting to date is that markets currently expect that average inflation in Italy in the next five years will be close to zero. Therefore, if the observed average inflation were to be higher, The five-year BTP linked to inflation would be better compared to a classic five-year BTP, which currently has the same nominal yield. While if Italy were to fall into a deflationary situation, the capital of the BTP linked to inflation would be protected because it could not be less than 100 at maturity. In essence, in this new issue free inflation insurance is incorporated “, concludes Quirighetti.

On the contrary, the experts of SoldiExpert a few days ago found: “The yield offered by this BTP issue does not make us shout at the deal because what is offered is really the minimum union with respect to bonds already issued even among those anchored to inflation, and which can perhaps be purchased well below the nominal with some tax advantages on the recovery of capital losses “.

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