3 BTPs to bet on now-proiezionidiborsa.it
In the coming months, BTPs could be a tempting opportunity for those who have money to invest with a horizon of a few years, or longer. But also for those aiming for short-term speculation. Attention is mainly focused on 3 BTPs with different maturities. These titles can earn from 30% to 130%.
Long-term Treasury bills are fixed-rate government bonds. These bonds pay the investor a fixed coupon each year over the life of the bond. For example, a BTP due in a few months has paid a stratospheric annual coupon for almost 30 years.
Because in the coming months, BTPs could represent an opportunity
Fixed-rate bonds, if on the one hand they offer the convenience of a constant coupon, on the other hand they are penalized by the rise in yield. That’s exactly the current scenario. For about a year there European Central Bank is driving up interest rates to fight inflation. The increase resulted in a decline in BTP pricesespecially those in the long and very long term.
In recent days, Christine Lagarde, president of the ECB, has declared that she will continue to raise the interest rate. Analysts almost all agree that the ECB will increase the cost of money by 1% in the next two meetings. Then the squeeze will slow down or brake. When the ECB will cease these increases then i BTP pricestoday at its lowest, they will continue to rise.
3 BTPs to bet on now for a long-term investment but also to speculate
When the market has understood that the ECB has made the last increase, the race to purchase the BTPs will startespecially those in the medium and long term. This will cause a sharp rise in prices. THE 3 BTPs to bet on have a maturity of 10, 20 and 30 years. The BTP maturing in February 2033 (ISIN: IT0003256820), at the time of the analysis it is about 114 cents. A year ago its valuation was 144 cents. Anyone who bought it now and held it until maturity would take home a gross annual yield of over 4%.
The BTP expiring in March of 2041 (ISIN: IT0005421703) is priced at around 70 cents. Anyone who bought it now and held it until maturity would take home a gross annual yield of over 4.2%. A year ago the price was 99 cents.
Finally, the BTP expiring in September of 2052. This bond (ISIN: IT0005480980) is worth 66.3 cents at the time of analysis. A year ago the price was around 100 cents. Anyone who bought it now and held it until maturity would take home a gross annual yield of over 4.2%.
The two temporal earning objectives offered by these 3 BTPs
Anyone who has money to invest with a horizon of at least 10 years could bet on one of these 3 stocks. He could be a father who wants to let his son in heredity a capital. Or a worker who invests inpension integration when he gets off work.
However these titles can also be a tempting opportunity for speculation, especially the last 2. In fact they could buy at the end of the bull cycle of the cost of money betting on the price rally. To then resell them even after only a few months.
