BTP fever Future among savers. In fact, on Monday 19 April the MEF will kick off the placement of the third series of the BTP Futura.
As happened in the 2020 issues, the next one will also be 100% aimed at the retail public. Furthermore, it will have a duration of 16 years and guaranteed minimum nominal annual coupon rates are envisaged.
Given these premises, we explain why the BTP Futura 2037 offers golden advantages for those who have money on their current account.
Let’s see the first advantages of the BTP Futura 2037
A first advantage refers to the duration of the bond: 16 years.
It may be that those who have significant liquidity on the current account do not know where to invest in the long term. Or go looking for long-term safe havens without the need to constantly worry about its management.
In such cases, therefore, the long duration removes the chestnuts from the fire: you invest today, you collect the coupons for 16 years and in 2037 you recover the capital.
Another advantage refers to the guarantee of the issuer, even if it is a debated issue.
On the one hand, the credit rating and level of debt of the debtor are red alert. On the other hand, it must be said that Italy belongs to a first-rate Economic and Monetary Union. In which the ECB gives (indirectly) a lot of collateral to Member States and their creditors.
The coupon flow
Let’s proceed with illustrating why the BTP Futura 2037 offers golden advantages for those who have money on their current account. Another “pro” could come from the coupon structure of the new issue. In this regard, however, we are in the field of hypotheses. The only certainties are only two:
a) the nominal (half-yearly) coupons increase over time. And calculated on the basis of a given fixed coupon rate which increases at the end of each four-year period;
b) the presence of a double loyalty bonus linked to the growth of the Italian nominal GDP. A prize, however, reserved only for first-hour subscribers who will keep the title until its expiry.
Then it is not given to know more. The definitive coupon rates will be announced to the market only at the close of the placement, ie on Friday 23 April.
However, please keep in mind that this is a 16-year issue. Therefore, it is not unrealistic to expect a weighted average annual rate in the order of 1.00-1.10% or so. In fact, today the secondary market offers so much for similar maturities.
So, why does the BTP Futura 2037 offer gold advantages for those with money in their checking account?
But the benefits don’t stop there; in fact, at least two other elements deserve to be remembered.
First of all, the one for which both postal savings bonds and government bonds are exempt from inheritance tax. The Legislative Decree no. 34/1990 introduced in fact a facilitated taxation system for all these instruments to guarantee the State. In a nutshell, bonds and government bonds do not contribute to forming the hereditary assets.
Second, the patrimonial scarecrow. We specify that here we are in the field of suppositions and not certainties. Let’s say it better: if a property tax arrives tomorrow or 100 years from now, would the state also hit those who lent it money? We do not know, but our doubts deserve at least a minimum of reflection in this regard.
We have therefore exposed why the BTP Futura 2037 offers golden advantages for those who have money on their current account. However, never forget the cardinal principle of diversifying your savings. So it’s okay to consider the BTP Futura, but let’s not limit ourselves only to it.
Finally, in the article mentioned here the link we illustrate how much those who invested 10,000 euros in the BTP Futura in 2020 earned.
–
