The hunger for fixed income by the retail investors, as demonstrated by the huge participation in the placement of the latest edition of the Btp Valore, various ports issuers to propose themselves on the capital market with bonds that appear very palatable. In a period in which a decline in rates is expected, it is clear that emissions with appetizing returns they stimulate investors to put hay on the farm as often as possible, in the prospect of not finding attractive coupons later.
But sometimes, analyzing the detail of the offer, what seemed like gold fades over the years. This has been the case, in recent days, of Société Générale and Goldman Sachs, both of which landed on the capital market with juicy results bond intended for small savers. Let's see the actual characteristics.
Société Générale: 15-year bond with first coupon at 10%. But then it drops to 1,5%
The French bank has listed a bond (ISIN code XS2746361901) on the Eurotlx segment of the Italian Stock Exchange 15 years with minimum cut of 1.000 €, therefore the most suitable threshold for small savers. The first year the bond yields 10%. Very appetizing indeed. But then there coupon drops progressively from year to year: 5,5% in the second year, 5% in the third and so on, with a reduction of half a point each year up to 1,5% in the tenth year. From the 10th year to the 15th year the rate remains fixed at 1,5%.
Doing the math, the gross effective return, calculated by Skipper Informatica, amounts to 3,56%. Furthermore, for this type of securities a tax of 26% must be applied (compared to 12,5% for government securities) and therefore reaches 2,57%.
For the BTP Value placed last Friday for over 18 billion, the rate is 3,25% for the first three and 4% from the fourth onwards to which is added a possible loyalty bonus of 0,7% reserved for those who purchase it during the days of placement and holds it until maturity.
Goldman Sachs: minimum threshold 100 euros and initial coupons at 8%. But then we get to 1,25%
Another similar case is that of the bond issued in recent days by Goldman Sachs. The American bank has issued a bond on the Euromot segment of the Italian Stock Exchange (ISIN code XS2708218800) with a duration of 13 years and, to attract small savers even more, it has further lowered the minimum threshold: a 100 €, instead of the classic 1.000 euros.
Also in this case the issue goes off with a bang: the coupon is indeed 8% for the first three years. For the fourth and fifth year it goes to 3%, the sixth and seventh to 2% and subsequently, from two years to two years it scales: to 1,75%, 1,50%, up to 1,25% final. The actual return, according to Skipper Informatica, is 3,51% gross per year.
Also for this stock, as for that of Société Générale, the tax rate of 26% is applied and the yield therefore drops to 2,54% net. Also for this bond the issuer reserves the right to repay the investment early, during the first 12 years of the life of the issue: in this case the investor will be able to benefit from the coupon accrued up to that point, plus the 100% reimbursement of the nominal value.
