In this article, the Stock Exchange Projection Experts summarize the salient features of the new bond. It arose as a result of the government’s cash needs for all aids and supports financial loans disbursed in recent months to households and businesses.
Therefore, we present the BTP Futura 2028 in the launch pad and its characteristics.
The new BTP Futura November 2028
After the first summer experience, the Treasury issues a new BTP reserved only for the public of small investors (in jargon: retail). The BTP Futura November 2028 has an ISIN code: IT0005425753, with a duration of eight years and six-monthly coupons.
Still on the subject of returns, they will be of the step-up type, that is to say of the “rising” type over the years.
Friday 6 November the Treasury he communicated to the market that three distinct thresholds are envisaged for it. Precisely, the 0.35% return for the first three years; then 0.60% for the fourth, fifth and sixth year of the product’s life. Finally, the 1% yield (always gross) is the prerogative of the last two years only.
Only with reference to the second and third bracket of rates, these could possibly be revised upwards, but at the end of the placement.
The other advantages linked to this government bond
Among the most salient features of the new BTP we must also mention the so-called loyalty bonus. It would be a bit difficult to explain it using different terms than how it was aptly baptized. This is an extra coupon recognition due only to those who buy in issue and hold it for all eight years.
It will be established with certainty in 2028 and will take into account the average Italian GDP from 2020 to 2027. In any case, it is already known that it may vary from a minimum of 1% to a maximum of 3% average GDP growth.
Therefore, also in this case there is a minimum threshold and a “cap”, ie a ceiling on the upper part of the premium. The latter aims precisely to entice subscribers not to sell it on the secondary at any time after the purchase.
Market returns today
Now, by making a weighted statistical average of the returns for its entire duration, an average rate comes out a notch above that of the second step. That is, slightly above 0.60% gross (around 0.605%).
In practice it would offer a little more than a decade bought today on the secondary market would make. This morning, in fact, at the opening, the BTP with ten years of expiry fell to a yield of 0.59%.
However, the loyalty bonus must also be added to the weighted average return. In this way, the overall final rate (weighted average) rises even more decimal places. And, as mentioned, it will be a function of the GDP trend in the years to come.
Here, therefore, is presented the characteristics of the BTP Futura 2028 in the launch pad.
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