Buying a BTP below par

BTP training

Buying a BTP below par

Buying a BTP (Buono del Tesoro Poliennale) below par means buying the security at a price lower than its nominal value (100). Here's what to consider in this situation:

Meaning of Buying Below Parity
- Price Below 100: If a BTP is trading at a price below 100, it means that you can buy it at a discount to its nominal value. For example, a BTP with a price of 96 is bought at a cost lower than its nominal value.

Higher Yield
- Increased Yield: Buying below par increases the effective yield of the security. In fact, in addition to the coupons, when the BTP expires, you will receive the nominal value (100). This can lead to an additional gain compared to the coupons themselves.

Market Risk
- Market Conditions: A BTP may trade below par due to higher interest rates on the market or higher risk perceptions related to the issuer. It is important to evaluate the reasons why the price has fallen.

Taxation
- Withholding Tax on Coupons: The coupons received will be subject to a 12.5% tax. Furthermore, if you sell the BTP before maturity at a higher price than the purchase price, you will have to consider the taxation on capital gains.

Investment Strategy
- Evaluation of Opportunities: Buying BTPs below par can be an interesting option for investors seeking returns. However, it is essential to analyze the economic context and your liquidity needs.

Conclusion
Buying BTPs below par can offer opportunities for returns, but also involves risks related to market conditions. It is important to make a careful assessment before making a decision.

Information on BTPs

Choose a topic from the list below and learn more about it

Capital gains

Interest rate risk in BTPs

Credit risk of BTPs

BTPs, BOTs, CTZs and CCTs

The profit from a BTP

Liquidity risk of BTPs

Stock Market Calendar and Trading Hours

What is a bond

The price of a BTP

Reinvestment risk of BTPs

BTPs and risks

Buying a BTP below par

The maturity of a BTP

The yield of a BTP

MOT Market

The periodicity of BTPs

Capital losses

Is it worth investing in BTPs?

Selling BTPs at maturity

Selling BTPs before maturity

Inflation risk of BTPs

Taxation on BTPs

Choosing between BTPs and STOCKS

Your advertisement here

BTPfacile.it is your opportunity to reach a strongly growing and highly targeted audience
More information

How much do BTPs yield

Enter how much to invest in BTPs and the simulator will immediately calculate the net return by processing the purchase price, maturity of the security, coupon interest, purchase date, investment amount, reduced taxation of 12.5%

BTP net yields, BTPs in real time

The net yields of BTPs are the yields that an investor can actually receive after taxation. The yields of government bonds are subject to a taxation of 12.5%; stay updated for free on BTPfacile.it on BTP prices and consult all the relevant data such as the net coupon, net yield and maturity

Net yields with the BTP investment simulator

Calculate with the real-time simulator how much you could earn by investing in BTP. It will calculate the purchase price, maturity of the security, coupon interest, purchase date, investment amount, preferential tax rate of 12.5%

What they say about us

And what do you think of BTPfacile.it? Contact us by email 1vih77pwib4ijnxj6f4gnoccw60d45y@b4eqpdcbkd3ttky6ppfrfglmca0kc78i3gpl4y6eu8slurs2sxh.nay44gnjqijktptk7huf11t

Carmine

BTPfacile.it is a website that offers tools and information to help investors choose the BTPs that best suit their needs. The site includes an investment simulator that allows you to calculate the net returns of BTPs in real time, by entering the amount you want to invest. The site is useful for those who are trying to better understand the returns of BTPs and want to make informed choices.

Ettore

I've been using BTPfacile.it for some time and can confidently say it's one of the most useful and intuitive tools for those who want to invest in Italian government bonds (BTPs) with an informed mind. The site is clear, fast, free, and displays the average annual net yield in just a few seconds, something that's often difficult to understand with official data. Thanks to BTPfacile.it's BTP investment simulator and the ability to filter by maturity, type, and yield, I can always find the right security for my needs. I regularly recommend it to friends and family, even those with little investment experience: everyone finds it simple to use and very helpful in understanding what they're really buying. Congratulations to the team: you're doing a great job!

Francesco

BTPfacile.it offers useful and clear information on BTPs and has an intuitive interface, to be recommended

Disclaimer
All information displayed on BTPfacile.it is to be considered for informational purposes only and does not constitute in any way an investment, savings, legal or tax advice. The data displayed is generated by our systems automatically and despite our continuous commitment to offering the best possible service and the best online BTP investment simulator, we do not guarantee the accuracy of the information and we do not assume any responsibility regarding the use of the information itself
The BTPfacile.it team

Buying a BTP below par