|
  
- 帖子
- 706
- 精華
- 0
- 威望
- 316
- 魅力
- 150
- 讚好
- 0
- 性別
- 男
|
12#
發表於 2008-10-8 07:03 PM
| 只看該作者
i thought it is the reason of rate of return.9 h) f( K9 _ `5 \+ f( ?' o
CDs could have different ratings, AAA -> F,
3 p# o4 d( z) `/ Z9 P& Nmore risky ones would have higher premium (interest rate) as a compensation for an investment.
% Z! \& ?* V% } O" {main reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return," u% P k- C. ?
in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
' u7 J/ Y1 Q% U# O( M, i# M4 BAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.
7 W5 z( @! T9 f* Gsimilar to bonds, CDs trading in the secondary market have different value at different times,
) b2 A' Y7 ]. Z1 G. X/ b4 Dnormally the value is calculated by adding it's principle and interest.
. y* O& [; `1 S- y' @+ Qeg. the value of the mortgage+the interests to be recieved in the future.
0 M7 ^2 j- q5 Q; `banks who sell the CDs, could enjoy a few benefits like, the present value of cash and passing the risk of holding a debt to another party.
1 {# j. r/ W+ d1 u$ i' B8 j. w2 F4 m+ w+ }( |7 c! C
im not quite sure if the multiplier effect does really matter in this case.6 K$ D: U: I0 j: A0 J; R: K
in stock market, it's the demand and supply pushing the price up/downwards.
% b5 \5 e, f+ a' l5 ^3 OFor eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,0 u5 G- M- j( i v C! t# c& ? y: V
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
3 z$ D2 R. Y& R( \The capital loss that ppl suffer nowadays, i believe, most of them does not really suffer a real $ lost yet as long as they dont sell their securities. * h i, `; w: Z4 n- S
but the value of their assets did really drop significantly.7 ^% C8 X% y4 P( W8 Q' S$ \
L7 V! B- E- y
[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
|