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發表於 2008-10-8 07:03 PM
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i thought it is the reason of rate of return.# w) v u2 |/ |: H
CDs could have different ratings, AAA -> F, a5 V3 Y. w% v0 S/ i& J
more risky ones would have higher premium (interest rate) as a compensation for an investment.
4 p& o- {+ ?* O# D ~main reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
9 b+ M# f7 a3 F' a9 e% N/ ]in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities./ r; O2 \. F8 {. F# o6 I
Also, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.
- _& s. b2 I" T: Nsimilar to bonds, CDs trading in the secondary market have different value at different times,
! O6 [, e, g$ n8 W; [# R6 y$ l! `! B' Onormally the value is calculated by adding it's principle and interest.
* D3 B; Z7 }9 Leg. the value of the mortgage+the interests to be recieved in the future.
9 ?, ?: {* W8 dbanks 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.
! p" l' L* t: |- ?; I, x1 x4 V( f. g- G3 a
im not quite sure if the multiplier effect does really matter in this case.: A6 I0 a: d+ R! J
in stock market, it's the demand and supply pushing the price up/downwards.( e% t% G" g4 f; N* f
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,% W) P) j, f/ I5 O
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
) A5 T, g# l7 u4 J5 K! oThe 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. ; V1 [ l j4 z8 a
but the value of their assets did really drop significantly.% S' m, W1 f5 o
- k3 _, t' O( N# h0 O
[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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