From next October 19th to October 23rd the new BTPs will arrive on the Italian market, securities intended for small savers who this time will have two options available: the BTP Valore and the BTP Valore Insieme. Adusbef (Association for the Defense of Banking Services Users) reminds us of this, but invites investors to pay the utmost attention and carefully evaluate the subscription in light of the new economic scenario. This year’s novelty is the Btp Valore Insieme: it is a security that does not provide periodic coupons, with the entire remuneration being paid in a single payment upon maturity of the security, together with the reimbursement of the invested capital – explains Adusbef – A solution designed for those who do not want a periodic income or interest coupons to spend, but prefer to keep everything invested.
The yield offered is 3.5% per year, below the current inflation rate of 4.2%.
“However, these securities have an enormous limitation that savers would do well to consider: they do not protect against the high cost of living or the effects of the international geopolitical situation – explains Beppe Scienza, financial consultant of Adusbef – The return that will predictably be offered will in fact be around 3.5% net per year, and if this hypothesis were to be confirmed in the rate that will be communicated by the Treasury before the placement, it would be a value lower than inflation, currently at 4.2%. In essence, high cost of living and increase in prices they risk completely nullifying the returns of these securities”. However, few know that there are real securities on the market, i.e. indexed to consumer prices: this is how the Btp-i 0.1% May 2033 or the Btp-i 0.4% May 2030 work. They are securities that yield from 1.4% to 2%, to which the inflation rate of the Euro area is added. Thanks to the inflation indexation mechanism, the holder is entitled to the recovery of the debt upon maturity loss of purchasing power realized over the life of the security. Taking the latest data on the cost of living as a reference, this corresponds to a return of 4.5-5% net per year, calculates Adusbef.