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Maximizing Returns: Investing in BTP Valore Government Bonds in 2023

The BTP Valore are the big news of 2023 for government bond investors. How much can you get by investing in these stocks now?

Government bonds have always been recognized as the investment products with the highest security rate. In 2023, factors will be added that greatly increase their yield, consequently making them an unmissable appointment for savers.

Investing in government bonds this year is cheaper than in the past – ANSA – ilovetrading.it

The finance law risk-reward ratio it doesn’t prey: the riskier an investment, the more you earn; the safer an investment, the lower its return. Keeping this maxim in mind, it is not difficult to understand why government bonds have always been considered by finance as buffer investments generally made to cover more important investments made elsewhere. Since they are covered by the Italian state, government bonds are the safest investment products money can buy in our country, and consequently also among the least remunerative.

For a long time, fixed-rate three-year BTPs have been the reference securities for savers who intended to invest in safe products in order to have a small return on maturity. THE Classic fixed-rate BTPsin fact, they maintain their interest rate over time without being influenced by external events that change the financial market. Whereas revenue is very low anyway for many savers have focused on security, relying on fixed-rate securities to be sure of a precise income. The economic crisis of 2022-2023 changed things, but for once in a positive way.

The rate revolution of BTP Valore

There have been a number of side effects with the spike in inflation and the resulting reaction from the ECB. There monetary policy of the ECB points towards the increase in interest rates which on the one hand increase the interest on mortgages and loans, making the installments higher, but on the other interest on BTP Valore also increased variable rate.

The intervention of the MEF on government bonds has made the latter even more profitable – ANSA – ilovetrading.it

Due to the dizzying increase in inflation and the counter-thrust of interest rates, the variable rate of the BTP Valore increased so much as to exceed the 4% rate of the fixed-rate Classic BTPs.

To this was added theintervention by the Ministry of Economy and Finance, which has every interest in selling as many government bonds as possible and has therefore carried out a step up in the rates to make the BTP Valore even more profitable. The conclusion of these events is that three-year BTP Valores are now an unmissable investment. Those with highest rate reaches 7.25% and they are going to steal.

How much can you earn by monetizing now?

With BTP Valore the best thing is wait for the deadline to expire. By doing this it is possible to accumulate all possible interest and receive the maximum yield from your investment. If for any reason, however, you want to sell in advance, you can still earn something.

Considering that they came out not even a month ago, today liquidated BTPs can earn very little. By liquidating 10 BTP Valore today for a total value of 10,000 euros, you can earn just 42 eurosconsidering their effective yield at 3.59% and the taxes to be paid.

2023-07-19 04:15:43
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