Everyone has become a guarantor for Btp Valore, which has attracted great interest from investors since the first day it was launched. The new government bond, reserved for small savers, raised a total order of 18.19 billion euros, a real record. This is the highest figure ever recorded in retail issues allocated to individual savers. Why has Btp Valore been so successful?
Double record for Btp Valore
There is a great desire among small investors to invest in government bonds, particularly Btp Valore, to counter the negative effects of inflation on money in the current account. Following the great success of the inflation-indexed government bond Btp Italia, Btp Valore, the new bond allocated to small savers by the Ministry of Economy, was also filled with orders.
Btp Valore collected orders of 5.43 billion euros on the first day of placement and set other records in the following days with a series of never-before-seen contracts. The placement of the new government bonds allocated to individual savers, which started on June 5th, was thus closed with a never-before-seen figure of 18.19 billion Euros (18.191.090 Euros according to official data). On the last day, 1.12 billion was collected for 44,548 contracts.
However, Btp Valore also marks another record in terms of the number of contracts signed, with 654,675 the highest number ever in a single government bond settlement for small savers.
Because it was a success
The bond will have a maturity of 4 years and will guarantee fixed returns that increase over time, but above all it will provide a maximum ultimate loyalty bonus for those who decide to hold the bond until maturity (all info here and comparison with other government bonds). The minimum guaranteed odds announced on June 1 were confirmed:
- 3.25% for the 1st and 2nd years;
- 4.00% for the 3rd and 4th years.
Subscribers who hold government bonds for all 4 years will receive an extra 0.5% ultimate loyalty bonus.
In such an important inflationary context, dominated by strong geopolitical and economic uncertainty, investing in government bonds currently seems like the most convincing solution for small savers. Government bonds, in addition to guaranteeing the capital invested, make it possible to counteract the erosion of inflation in current accounts, guaranteeing safe returns over time.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
