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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.; J! ]; y2 \/ V1 v
CDs could have different ratings, AAA -> F,
# ]: c" Q- l* h! h# Fmore risky ones would have higher premium (interest rate) as a compensation for an investment.
% Z$ |; m1 i% s. _main reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
+ W) t4 q0 d+ L! ?. }in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
% Y. B* E. N. \/ qAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency., h, } A# _9 K
similar to bonds, CDs trading in the secondary market have different value at different times, B7 b! S& T/ g0 e+ E5 l, {2 ]8 s
normally the value is calculated by adding it's principle and interest.
1 g9 O/ c$ o P' M8 c8 l8 b! Deg. the value of the mortgage+the interests to be recieved in the future. , I& G" |: y( X; j
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.
( `+ i' A4 l: P5 M' R. p1 _9 X# A% F7 v- {
- u5 ^; A* T% y4 o- z/ Sim not quite sure if the multiplier effect does really matter in this case.1 J2 b6 N& b7 E
in stock market, it's the demand and supply pushing the price up/downwards.
3 |5 V2 H; y0 f, T' r$ QFor eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,0 m+ w, f( K8 ]. O$ w
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
5 C. b0 B1 i3 LThe 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.
?; @' z& q: s4 [9 w4 Y+ K" tbut the value of their assets did really drop significantly.
6 }. R' c8 Y: M$ `
1 u+ Y. ]3 L a/ d- v[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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