In times of high inflation (equivalent to 11.8% in November), Btp Italia rewards investors with a total six-month return of 7.25%. The security, specifically designed to protect savings from the rising cost of living, saw a surge in orders in June, placing more than 9.4 billion euros (but Btp Italia in May 2020, in the midst of the pandemic, raised 22.3 billion). The formula for calculating interest is to divide the real annual coupon rate (1.6%) by 2 (semesters) and multiply by the nominal subscribed capital and by the standardization coefficient. The latter is obtained by dividing the inflation reference index (which excludes the tobacco share and is reported by the MEF) by the issue number (109.2). So For 10 thousand euros invested at the end of June, a voucher of approximately 725 euros (Total interest plus capital increase).
The primary task of BTP Italia is to return to the investor not the whole part of the increase in the cost of living accumulated in the six months that separate the two vouchers, but a significant part of it. The Treasury Department calculates and publishes the daily variance of inflation in the composition path online. right Now, As in past months, the semi-annual coupon balances are particularly high.
The question is: How long will the semi-annual coupon value stay at current levels? The monetary policy implemented by the European Central Bank aims to bring the cost of living back to growth of 2% annually. The goal is still out of reach, but it can be reached in times that are not too long, but not even close to each other. It follows from this that future coupons will most likely be characterized by still interesting but gradually decreasing values. Holding BTP Italia in the wallet will result in the possibility of collecting considerably good interest streams. At the same time, one might be tempted to sell them, to part with a good capital gain. Let go, at the same time, of continuing to collect good interest streams. At this point, it is best to wait for the influx of coupons that will accumulate in the coming months.
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