Savings: here is the new series of BTp bonds designed for families and savers

Consequently, savers’ assessments should be guided by factors other than the security’s yield, which, in the end, is the same.

The first, obviously, relates to the need or desire to receive interest in instalments over time, with the accelerated quarterly payments designed to create the impression of a sort of supplementary income offered by the BTp Valore.

However, the variables to be weighed up also include expectations regarding the potentially different behaviour of the two securities on the secondary market, which is currently grappling with a phase of rising interest rates that shows no sign of abating any time soon: these factors are particularly important in relation to the intended investment time horizon, for investors who do not rule out the possibility of cashing in on the investment before maturity.

Generally speaking, the coupon flow precedes the break-even point – the point at which the investor recovers the present value of the capital invested. Consequently, the implied interest rate risk associated with the two instruments changes:
the market price of the single-coupon BTP tends to be more sensitive to changes in interest rates, and in the event of a fall in rates, it will rise marginally more than the price of the coupon-bearing security.

Conversely, in a context of rising interest rates, the price will tend to fall at a slightly steeper rate than that of its counterpart.

In short, the price of a more traditional bond tends to be more stable, because coupon payments begin from the start of the bond’s life. However, it must be noted that the relatively short maturity of both bonds mitigates these differences, in a process which, in any case, will cause the price of the security on the secondary market to gradually converge towards the full redemption value of 100.

The different mechanisms will also affect the profile of the two issues, which will take shape on Friday 16 October when the Treasury announces the guaranteed minimum rates: and alongside the single-coupon BTP, the percentage of the final single coupon will be displayed in large font. The figures, which as usual will be finalised on the eve of the issue and may be confirmed or adjusted upwards at the close depending on market conditions, will take into account the fact that, in this case, no loyalty bonus is provided for those who hold the security in their portfolio until maturity.

In substance, as was said, that figure will not deviate by so much as a comma from the present value of the usual periodic coupons, which appear more modest. But in the market, even appearances can carry weight; and this comes into play amongst the variables that must contend with the need to protect capital from the headwinds of inflation, which does not seem set to subside any time soon, and is driving up the official rates set by central banks as well as the yields demanded by investors on government and corporate bonds.

As these are two separate securities with different ISIN codes, one of the options available is to split the investment between the more traditional BTp Valore and the one featuring a final coupon payment at maturity.

Otherwise, the two new issues have the usual, well-established features typical of bonds aimed at retail investors.

During the placement week, purchases are made at par and commission-free, with a minimum denomination of one thousand euros. The tax treatment is the preferential regime applicable to government bonds, with a tax rate of 12.5 per cent, exemption from inheritance tax and exclusion from the ISEE calculation of a total portfolio value of up to 50,000 euros.