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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.. I0 l$ w1 I' W& P4 ]8 N
CDs could have different ratings, AAA -> F,# f W( a5 V5 N1 Z2 U4 E, p
more risky ones would have higher premium (interest rate) as a compensation for an investment.
8 B6 `5 q, G' Umain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,3 o. z7 U1 t- w
in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
, F4 D! S6 B1 P7 K% HAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.
4 T" l$ ~. G* Jsimilar to bonds, CDs trading in the secondary market have different value at different times,
3 x; r/ [5 M# J4 ]) wnormally the value is calculated by adding it's principle and interest.
Y# X) O) f/ M( Xeg. the value of the mortgage+the interests to be recieved in the future. & o8 c( D: E9 n& U& o6 `0 T
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.
q8 r1 f/ l+ {
9 O0 }+ K0 N& Nim not quite sure if the multiplier effect does really matter in this case.5 w8 H$ `7 E9 s# D' T7 `$ S v/ Y
in stock market, it's the demand and supply pushing the price up/downwards.
% s- V, R) s& hFor eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,' Y! h- `. I4 n0 b* Q- F) m# X" g
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.! f7 u# s: U- r4 r. B8 M) X
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. - A. Z: i# V4 T2 ~" M* u
but the value of their assets did really drop significantly.3 H, T0 n1 J. x' ^1 G+ ]
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[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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