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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.3 o+ r. Q! C; I- j7 O1 [, q" a* F
CDs could have different ratings, AAA -> F,4 J3 w2 d$ N" g+ J& d7 d
more risky ones would have higher premium (interest rate) as a compensation for an investment.
8 Y: l; e; K8 r. m. S4 Fmain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,; u# I8 c% P3 l. o% h% ^$ z0 c
in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
5 b9 [! ]$ A8 ^0 D7 NAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.! g8 E* b8 v: [9 u7 P
similar to bonds, CDs trading in the secondary market have different value at different times,. P ~& {3 w$ \7 ~' c
normally the value is calculated by adding it's principle and interest.
; J, O$ e% {: m! O* Z o2 \eg. the value of the mortgage+the interests to be recieved in the future. 4 F1 J1 c( ] h$ V/ {5 G
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.5 e- [, d* ^% q8 c# {7 D* O, }
( V- i! k# {3 \; dim not quite sure if the multiplier effect does really matter in this case.) E& S3 o( a0 D) j5 W L3 \
in stock market, it's the demand and supply pushing the price up/downwards.- H* x6 _' r* u7 d6 N
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12, o4 A, Q& s J- `1 t" [0 ]1 u
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
) c% {% E0 K2 c! ]5 ^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.
" B% w8 u- M+ Y/ z4 ]4 I8 k# k/ n2 wbut the value of their assets did really drop significantly.
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- b. Y+ f x( T[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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