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12#
發表於 2008-10-8 07:03 PM
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i thought it is the reason of rate of return.
; y8 f: m/ Q/ a j" d- |CDs could have different ratings, AAA -> F,& d7 L! Q3 X8 a% Y; D; x
more risky ones would have higher premium (interest rate) as a compensation for an investment.
. u. e0 K2 r# f8 ?$ E* A: Lmain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
( b: K. p* `9 V1 L$ u7 x. Lin other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
3 P* V$ U: s8 ?1 rAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.) l( ^" `8 y; d* Z! E
similar to bonds, CDs trading in the secondary market have different value at different times,5 [5 g |- j. g. X
normally the value is calculated by adding it's principle and interest. ; z) J. S6 }' @6 v
eg. the value of the mortgage+the interests to be recieved in the future.
% b% x7 f+ p3 c+ v8 \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 e! s# v0 G3 [: [: P9 ]! y& O
, W5 v. |) j" Q2 h5 D* L, him not quite sure if the multiplier effect does really matter in this case.
- A. r* P8 ]3 u6 d* I+ Hin stock market, it's the demand and supply pushing the price up/downwards.
1 o& W# _6 O2 I% Z, C1 NFor eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,: p/ W9 _2 s% |3 r
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
+ ]+ R, O" k" \% w: c0 IThe 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. 1 ^# | e% Y1 E4 {2 {, d
but the value of their assets did really drop significantly.6 H4 ]7 }6 R( p; O
5 u. Z( C/ r+ T# w
[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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