Btp Valore: applications for 4.768 billion on the first day. Yield: waiting for the definitive coupon rates

John

By John

Sprint start for Btp Valore. The first day of placement of the new security issued by the Treasury closed with 162,577 contracts for a value of 4.768 billion, just under the 5.4 billion achieved during the first edition.
The bond has a duration of 5 years, offers quarterly coupons and guarantees an extra final loyalty bonus of 0.5% for those who hold it until maturity. For the first 3 years, a minimum guaranteed rate of 4.10% is recognized, which rises to 4.50% for the fourth and fifth years. The second issue will end next Friday 6 October, unless closed early.

Taylor (AllianceBernstein): “The excess of deposits helps Btp Valore”

«The excess of Italian deposits in national bank accounts that is still recorded should play an important role in offering considerable support to the issuance of retail BTPs currently being placed». This was stated by John Taylor, co-manager of AllianceBernstein’s AB European Income fund, in reference to the ongoing placement of the BTP Valore. «This positivity could then be reflected in the public markets, with less supply to be absorbed by institutional investors, just as happened at the beginning of the year, when the issue launched in March attracted almost 20 billion in investments», concludes Taylor.