The fourth issue of Valore BTPs is underway (and how they are different from the other three)

The Treasury is still focusing on families. The fourth issue of Valore BTPs is underway. From today (6 May) to Friday at 1pm (unless early closure) small savers can purchase Treasury bonds guaranteed by the State, dedicated exclusively to the retail market. Minimum investment one thousand euros. The objective, after the boom of the three previous issues, is clear: to detach part of the Italian debt from the international market (subject to fluctuations and speculative maneuvers) and to further increase the share of public debt in the hands of small savers not inclined to speculation and stock market games, with stable financial behavior. And with the start of the rate cut by the ECB approaching, this is the last round to invest in government bonds with “helpful” rates.

The new government bond has practically the same structure as the previous ones: capital guaranteed at maturity, in six years, with coupons paid every three months. So as to ensure small investors greater frequency of cash flows. For the first three years the minimum guaranteed rate is 3.35%, then 3.9%. The loyalty bonus of 0.8% of the total value for those who do not sell before the deadline has also been confirmed. The definitive rates will be set at the end of the placement, but can only be confirmed or revised but only upwards. From a tax point of view? Taxation of coupons and premiums reduced to 12.5%, exemption from inheritance taxes and exclusion from the ISEE calculation up to 50 thousand euros.

Is it really worth it, is it worth it? One thousand euros is the minimum investment. This means at the end of the six years just over 200 euros (7 euros per quarter for the first three years and then 8.5 euros for the remaining years). For the investment to be more attractive, you need to invest at least 5 thousand euros and so in the end, at maturity, you receive a total of around one thousand euros. Obviously it's better for those who manage to invest 10 thousand euros today and don't touch it until May 2030. In this case every three months a net coupon of 73.28 euros is collected, from the fourth year 85.31 euros, reaching 341 euros every year. 'year. Net of everything, the total comes to 1,970 euros.

Today 13.5% of Italian public debt is in the hands of retail customers. In the last two years, the share of government bonds (BOTs and BTPs) in the portfolios of small savers has more than doubled: going from 6.4% in December 2021 (685 billion out of a total of 2,234 billion in securities) to 13.5% 322 billion out of the total 2,389 billion) of October 2023 (data from the Autonomous Italian Banking Federation). And the Treasury collected 53.7 billion euros in the three previous BTP Valore subscriptions alone, equal to 2.2% of the total amount of government bonds in circulation on the same date.

The first issue (maturity four years with rates of 3.25% and then 4%) in June 2023 raised over 18.19 billion euros. The second, in October last year (5-year maturity and rates at 4.10% and then 4.5%) totaled over 17, 19 billion euros. The third, in February 2024, brought over 18.32 billion into state coffers (6 years and rates at 3.25% and then 4%).

How will small Italian investors respond? Judging from the start, there seems to be a desire to exploit the last useful window before the expected rate cut by Frankfurt and therefore buy now, “guaranteeing” a small capital gain. In the first half hour, orders worth around 370 million euros were recorded. Public debt in the hands of Italian savers is growing.