|
  
- 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.
) @2 e" Z# s! Q$ s: {CDs could have different ratings, AAA -> F,
7 T/ T) |" ~6 [7 N: G1 Q0 L9 v7 smore risky ones would have higher premium (interest rate) as a compensation for an investment.
5 n* L4 T. J- h' cmain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
. P7 L3 Q6 z$ o4 x c, kin other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
: e$ M) K! B. [8 sAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.
1 V& c9 ?; x6 w2 y. {similar to bonds, CDs trading in the secondary market have different value at different times,
9 h2 m' J1 t+ |1 Cnormally the value is calculated by adding it's principle and interest.
; c. M9 a# o5 r' u0 O/ i, ieg. the value of the mortgage+the interests to be recieved in the future.
1 [* T9 j( L. F& f( rbanks 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 }: P5 m2 p9 ~- B1 r; q( U& [& n. H4 p! F$ ~
im not quite sure if the multiplier effect does really matter in this case.# Q9 ]/ P$ E# a9 K; P/ A' \! Q: n
in stock market, it's the demand and supply pushing the price up/downwards.9 @0 J" B0 U/ k0 Q7 e+ d3 S
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,% b! ^+ Y, o' a1 c6 a" {
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
& Q0 p! }, k1 TThe 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.
2 T1 H/ J0 c* i1 c+ v+ ~/ tbut the value of their assets did really drop significantly.3 O5 k. t% ~9 _, R+ I/ x, U( U5 s
- h! K+ q2 W/ V& J0 h[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
|