The next BTP Futura 2037 is now on the launch pad. From tomorrow morning until 1 pm on Friday 23rd, unless early close, it will be possible to commit to the new bond status (ISIN code during the IPO: IT0005442089).
Let’s analyze the product here: What advantages does BTP Futura 2037 offer and when is it suitable compared to postal savings notes?
Similarities between BTP Futura 2037 and Postal Savings Bonds
First, let’s take a look at the most important things in common between the two premium product groups.
First and foremost, it refers to the degree of risk to which the two products are exposed, which in practice is very low. BTP Futura is released by MEF while i Coupons Released by Cassa Depositi e Prestiti (CDP) and distributed by Poste Italiane. But CDP is in turn controlled by the Treasury, i.e. MEF. Therefore, in both cases, there is a guarantee from the state.
The second common denominational feature refers to a 12.50% subsidized tax system on accrued interest income.
Let’s continue with Futura 2037’s BTP Analysis: What advantages does it offer and when is it suitable compared to postal savings notes? Another common feature is the coupon escalation structure. In other words, there is an increasing trend in the interest rates offered as the holding period of the underlying instruments increases.
Let’s explain it better: BTP Futura 4 offers distinct and incremental rates for each of the four years involved. Starting from 0.75% in the first 4 years to reach 2% in the last 4 years (16 years in total).
For example, the BFP 3X4 lasts 12 years and delivers an effective gross annual return of 0.10% at the end of the third year. Then we move to 0.20% at the end of the second year, and finally 0.30% and 0.50% at the end of the ninth and twelfth year.
So, what advantages does BTP Futura 2037 offer and when is it suitable compared to postal savings notes?
Now let’s move on to an analysis of the more distinct elements between the two types of products.
In addition to the rates recognized by the products concerned, the timing in which these interests are recognized must be emphasized. This is true in the event that the product is sold early, that is, before its normal life expires.
Good: In the case of postal savings certificates, the benefits are recognized only at the end of the reference time window. That is, at the end of the three-year period in the case of the 3X4 coupon or the four-year period in the case of the 4×4; And so on. The regular coupon only has more flexibility in this regard. Meaning that after the first year of purchase, the interest is recognized every two months.
On the other hand, in the case of BTP Futura, the voucher is every six months. Not only that, but in the event of a sale during the maturity period, the market price of the bond also includes the related maturity maturity.
In short, he is a supporter of BTP Futura and not a good.
Certainty of invested capital
We close the discussion about BTP Futura 2037, what advantages it offers and when is it suitable compared to postal savings notes.
The second distinction will turn out to be in favor of bonds and not BTP Futura.
By exiting the investment before the product expires, the BFP always pays the investor 100% of the initially paid up capital. For those who are looking in advance for absolute certainty and without any condition for a full return of what has been paid, the product does the trick.
On the contrary, BTP Futura 2037 (but the same applies to all government bonds), if sold prematurely, could lead to three different situations. The first is for the bond to be sold at the same purchase price: the transaction will be neutral.
Or it may happen that you are selling it at a price higher or lower than the price we bought it for. In the first case, we will get a capital gain, that is, on the difference between the money invested and that collected at the time of the sale. The opposite will happen in the other case instead.
Finally, the last difference, the loyalty reward: It only exists in BTP Futura and not in the structure of BFPs.
So here’s BTP Futura 2037: What advantages does it offer and when is it convenient compared to postal savings notes. Finally, in the article mentioned Here is the link We clarify the technical details related to the new bonds that will be offered from tomorrow.