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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.# F# S% b! y4 D1 ~" L9 J$ i
CDs could have different ratings, AAA -> F,
3 t% u8 z! o1 c* o, T9 U0 bmore risky ones would have higher premium (interest rate) as a compensation for an investment.
* R( @! \/ E& D$ M0 z3 P: Xmain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
; @$ h# E. q/ G( _1 V, C' @1 I+ _in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
, m' `) ~. d( x; kAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.
]; n1 c* |; X0 |: J1 |similar to bonds, CDs trading in the secondary market have different value at different times," H+ B; ^# s3 U% f/ j
normally the value is calculated by adding it's principle and interest.
; q+ Y; O4 V. x! r3 }& [eg. the value of the mortgage+the interests to be recieved in the future. ( }! B/ d& o- j9 h
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.2 E) ]9 [8 A* }0 Z# U4 H9 B
! q Q5 r7 `; e4 i( s# e4 uim not quite sure if the multiplier effect does really matter in this case.! `2 f. N0 p; H" l. c; }
in stock market, it's the demand and supply pushing the price up/downwards.! J& l. b8 I) W" ?# D; ^; p
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,: ]8 R6 d h- l. E
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
& W3 m; \( Y2 k6 V J& e G3 BThe 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.
8 I) `" ^9 E7 Y! K) ]but the value of their assets did really drop significantly.
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- ]' [4 w: W N6 C7 M[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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