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Bank bonds in Italian households� portfolios

Author

Listed:
  • Massimo Coletta

    (Bank of Italy)

  • Raffaele Santioni

    (Bank of Italy)

Abstract

The paper analyses the dynamics and main features of bank bonds held by Italian households and presents an estimate of the gross yield to maturity of the bonds purchased at issue. Since 1950 the share of these assets in households' portfolios has shown wide fluctuations, primarily reflecting the issuance policies of banks and changes in the tax treatment of securities, as well as changes in preferences. The share of bonds in the financial wealth of households reached a peak of 11 percent in 1973 and 2011. Since 2012 investment in bonds has started to decrease: by March 2016 the share of bank bonds in the financial wealth of households had returned to below 5 percent. The gross yield at issue of bank bonds placed with Italian households increased during the sovereign debt crisis but has now fallen back to the levels reached in the years preceding 2011. The yield spread with respect to five-year BTPs, which was mostly negative between 2009 and 2012, has been positive since the end of 2013.

Suggested Citation

  • Massimo Coletta & Raffaele Santioni, 2016. "Bank bonds in Italian households� portfolios," Questioni di Economia e Finanza (Occasional Papers) 359, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_359_16
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2016-0359/QEF_359_16.pdf
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    Citations

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    Cited by:

    1. Danilo Liberati & Francesco Vercelli, 2019. "As long as the bank gains: expanding the retail distribution activity," Questioni di Economia e Finanza (Occasional Papers) 510, Bank of Italy, Economic Research and International Relations Area.
    2. Bottero, Margherita & Lenzu, Simone & Mezzanotti, Filippo, 2020. "Sovereign debt exposure and the bank lending channel: Impact on credit supply and the real economy," Journal of International Economics, Elsevier, vol. 126(C).

    More about this item

    Keywords

    financial wealth; investment decisions; bond funding;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G01 - Financial Economics - - General - - - Financial Crises

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