BTP Valore, BTP Green, or more simply BTP, 2024 was a record year for new issues of Italian government bonds, which enticed everyone: funds, institutions but also private citizens hunting for safe yields.

The year 2024 will be remembered as an extraordinary year for Italian government bond issuance, with BTPs (Multi-Year Treasury Bonds) experiencing record levels of investor demand and interest.

In particular, different categories of BTPs, such as the BTP Valore and BTP Green, have consolidated Italy’s role in the European and global financial landscape.

Among the most notable results were the issues of the 10-year BTP and the BTP Green. The former attracted demand in excess of 140 billion euros, while the latter, with a 20-year maturity, garnered demand close to 130 billion euros.

Overall, the collection reached about 270 billion euros, marking an all-time record for the country.

The success of these bonds reflects not only the attractiveness of Italian government debt, but also the growing investor awareness of sustainable financial instruments. The BTP Green, in particular, is a clear signal of Italy’s commitment to supporting the ecological transition by financing projects related to environmental sustainability and carbon emissions reduction.

The record year for bond issuance was also made possible by a global economic environment that fostered interest in safe, high-yielding instruments. Italy was able to take advantage of this scenario, offering securities with competitive and solid yields, capable of attracting both institutional and retail investors.

During 2024 Italian citizens were attracted not only byyields on the 10-year bond that exceeded 4 percent gross at certain times, but also by the tax breaks the instrument allows on realized capital gains: 12.50 percent tax on capital gains, less than half the 26 percent tax rate for corporate bonds.

To better understand the dynamics related to BTPs, let us see below concrete examples on two instruments purchased on the same date, with the same coupon, at the same price, and with the same maturity.

The political unknowns (Ukraine, Middle East, Syria) remain so even though there have recently been signs of concrete attempts at peace, especially with regard to the ongoing negotiations between Israel and Hamas.

Indeed, the year 2025 could be characterized by the search for new international balances with ongoing assessments of what role the European Union could acquire in the face of a possible U.S.-China economic confrontation. For the EU, the pillars of development have long been energy, defense, and technological innovation in addition to the acceptance of the realization that in the face of giant financial markets that will face each other globally (U.S.-China), the only chance for autonomy lies in a strong and cohesive Union.

Trump could probably try to approach NATO countries individually, precisely to undermine European cohesion, and this possibility will be a very important focus of attention in the year to come, not least because upcoming votes, for example in Germany, could create further political turmoil after those that have already emerged first in Spain and then in France.

Even Trump’s recent statements on Canada and Greenland (the tycoon reportedly expressed a desire to annex the two countries using force if necessary) would seem to be more part of a propaganda context than a real expansionist desire, which moreover would violate international law, but could still be enough to destabilize the international framework if repeated.

India appears to be increasingly strong and growing (+ 6% GDP) with a very dynamic economy and is now an effective regional competitor to China, now with an established international dimension taking into account that the Indian stock exchange has even larger volumes than those of Europe and the United States, as well as a significant number of IPOs in 2024 testifying to the growing interest of savers.

On the monetary side, the FED has reportedly announced only two cuts in 2025 (fewer than previously planned), while the ECB has planned to follow up, with four cuts planned by the end of the year, and this could constitute a possible further spread in the cost of money between the United States and the European Union. One of the main reasons for this change in strategy is that theU.S. economy appears to be growing strongly, while the Europeaneconomy is still unresponsive.

In 2025 we will be able to assess the first applications of artificial intelligence in the various economic and social sectors, which are then expected to develop significantly in 2026. This technological paradigm shift also has unknowns related to the actual impact on production chains in terms of outcomes, the real effects in terms of employment and ultimately also the real governability of this technology.

The Italian economy and public debt: a pair that has become almost indivisible for years now.

Indeed, as far as our country’s economy is concerned, public debt is among the central (and ‘driving’) issues of the various assets that also drive the domestic market, but not only that.

Is it true that Italy is one of the most indebted countries? What is the ratio of Btp to public debt?

To take stock of the current situation, it should be pointed out that we are talking about a debt of more than 2.8 trillion euros, more or less 145 percent of GDP. As a result, yes, it is true, Italy is rightfully among the countries with the highest level of debt in the world.

Ordinary Treasury Bills (BOTs ) are short-term Italian government bonds issued by the Ministry of Economy and Finance (MEF) to finance government needs.

They are issued through a competitive auction, a mechanism that ensures pricing based on market demand.

Theauction of Treasury Bills is a key mechanism for financing the state and determining the yield of these financial instruments. Its operation ensures transparency and efficiency, allowing investors to participate based on market dynamics.

For those looking for a short-term, safe and relatively liquid investment, BOTs are an attractive choice that should be carefully evaluated according to the economic environment and one’s financial goals.In this in-depth discussion, we will look in detail at how theBOT auction works, why they are placed this way and what implications it has for investors and the financial market.

High yield bonds, also known as high-yield bonds, are an increasingly popular category of financial instruments among investors seeking higher yields than those offered by government or corporate bonds of high credit quality.

However, alongside the potential gains, these instruments also carry higher risks, making them suitable for knowledgeable and well-informed investors.

High-yield bonds represent an attractive opportunity for high returns, but they also carry significant risks that cannot be overlooked. Before investing in these instruments, it is essential to conduct a thorough analysis of the issuer, diversify appropriately, and assess one’s risk profile.

With an informed and well-informed approach, high-yield bonds can become a valuable component of a balanced investment portfolio. In this in-depth discussion we will explore what they are specifically, their main characteristics, advantages, risks, and some tips for evaluating them correctly.

Capital losses and capital gains are essential components in managing an investment portfolio, concepts that need to be well understood in order to begin investing in an informed and conscious manner. Understanding the mechanisms that determine them is crucial to making informed decisions and optimizing returns, both in financial and tax terms.

Through careful and knowledgeable management, investors can make the most of opportunities in the bond market while minimizing the risks and negative consequences of capital losses.

In this follow-up article we will better understand what capital gains (capital gains) and capital losses (capital losses) are and how to offset the different taxation based on the outcome of our investments.