Italy gives investors interest, while German savers to look in the tube

This message is likely to offers German savers a little: of all places in Italy, investors benefit from real interest rates. The country has recently issued bon

Italy gives investors interest, while German savers to look in the tube

This message is likely to offers German savers a little: of all places in Italy, investors benefit from real interest rates. The country has recently issued bonds that are below investment professionals as "patriots"-Bonds to be known: Only large investors and Italian retail investors were allowed to buy these papers. The auction flushed to the Italian state € 22.3 billion in the coffers, so much as never before in such an Emission.

the private savers of the country accessible, especially to the papers. While institutional investors in secured Bonds for EUR 8.3 billion, invested by savers with as much as 14 billion euros, including the "Financial Times" reported. The Reuters news Agency, according to the demand of the big investors after the bonds for the period to 2025, even at 19.5 billion euros. "Unlike previous Deals, there was day-to-day Orders," he quoted the "Financial Times" an analysts of UniCredit.

in Italy securities guarantee interest rate of 1.4 percent after Inflation

The special feature of the papers: they perform properly – no matter how much the Inflation is. The annual coupon of the bond is at a real 1.4 percent. Inflation would rise to five per cent, would drop the bond, therefore, is 6.4 percent. For comparison: Federal bonds with a comparable maturity for the most part, Zero percent coupons, compared to the current Inflation rate of minus 0.9 per cent per annum, remains exactly as an annual loss in purchasing power.

Also, German government bonds with a longer maturity reindeer in comparison with the Italian Bonds miserable. Currently, the average yield – without Inflation! – ten-year Federal bonds minus 0.4 percent. Here, investors lose so even without the price inflation in the capital. The current yield on German bonds was even before the crisis in the Minus, slipped through this but, again, deeper into the negative range.

a Matter of Federal bonds yield mostly negative

Although most of the Federal loans offer a small coupon. Because of the large demand for the virtually fail-safe Bonds, the securities will be issued with a buyer's premium (including the share premium), and also on the secondary market is higher than the nominal value of 100 percent traded. Back at the end of the term, however, only this nominal value. This difference can arise in spite of a positive coupons, with a negative return – even without Inflation. Small Caps Champion: your 3 pillars for a successful wealth accumulation. Successfully and safely in addition to values invest. (Partner quote) Here is an exclusive free trial!

So that government bonds can't even keep up with ordinary Italian government bonds. Because the current yield on ten-year Bonds from Italy is currently at 1.5 percent, as data from "CNBC" show. These papers would be worth it at the current level of Inflation, even if only minimally. The daily Figures from the Federal Finance Agency also show that all of the German bonds, with the exception of the extremely long-barreled title of reindeer negatively.

Italy pays for "patriots"Bonds properly to it

Italy, these Bonds can cost a lot. How the "world" wrote, would amount to the interest cost of these emissions to 1.6 billion euros. The country would have the money on the European stability mechanism (ESM) to be borrowed, would only be costs in the amount of 100 million euros.

criticism of the Bonds was promptly followed. "When it comes, allegedly, to the reduction of financing costs, one wonders why the Italian state pays voluntarily more interest," he quoted the "world" about the Economists Daniel Stelter.

But behind the Bonds, the calculus is, of course. So Rome wants to tap into the domestic assets. Indeed, the Italians are noted in the section wealthy than the Germans, as not only the "world". Italy is not the first Time that such a generous interest-bearing bond, but since the Euro debt crisis in 2012 on a regular basis. The aim is to compensate for the escape of foreign investors with fresh funds, the "Financial Times".

German investor, in spite of the loss of value to interest-bearing investments

conclusion : Italian investors will be rewarded, while German investors continue to lose with Mickerzinsen real money. Nevertheless, other plant forms for the Federal citizens hardly considered. As the "world," they wrote, citing studies by the ING and the Bundesbank, the German to her only through the Save-growing financial wealth is still about 40 percent in Bank deposits, or cash.

The "world" according to 53 percent of the Germans declared, moreover, in a survey of the banking Association, to want to be in riskier investments in order to generate a higher return – even though fixed-interest forms of investment, since 2016 is practically no return and slowly the purchasing power of the savers consume. You want to invest? The experts from the Bernecker exchange-compass help you in your investment. (Partner offer), Free of charge, the recommendations of the Bernecker exchange-compass test! (Partner offer)

A real Alternative – at least within the interest – rate offers- there are also. Even in Germany inflation is issuing indexed bonds, with the savers at least, the loss of purchasing power to compensate. The currently outstanding inflation-linked bonds of the Federal government but only have a coupon of between 0.1 and 0.5 percent. For more than the protection of assets, the papers are not worth the effort, so, unlike their Italian counterparts. Everything about the development of the Corona-crisis

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Updated Date: 03 June 2020, 09:26

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