Friday , April 23 2021

Btp Italy minimum tax rate 1.45% / Up to what is appropriate with regard to normal BTP


Monday will start the location of Btp Italia, which expires on November 26, 2022 with a guaranteed minimum real coupon rate of 1.45%, which may also be higher than the end of the order intake period set for November 22nd. The first phase of the stock period, which will be indexed to inflation, will be through 21 November and will be dedicated to individual and related savers. There is also the possibility of early closure of the placement, which in any event leaves the first two full days of the placement guaranteed. Il Sole 24 Ore reports Gianni Lupotto, CEO of the financial consulting company Alfa, which highlights how "the return on a regular BTP of the same maturity (4 years) is currently 2.49% for which the breakeven inflation is currently over 1%".


Essentially, if inflation is higher than 1%, Btp Italia guarantees a higher return than normal VAT of the same maturity. Given that the price index is currently around 1.5%, the investment would seem good, but the overall horizon of the investment must be assessed, considering that if inflation should fall below 1%, the convenience of Btp Italy compared to normal BTP would be less . It should not be forgotten that in case of retouching to the minimum guaranteed return, breakeven inflation may fall. Of course, the perception of our public debt in the market is not underestimated. So it will be good to reflect well on the investment, also evaluate the amount of securities with regard to the composition of equity and / or bond portfolio and the risk already embedded in it.

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