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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.
% i- p& h9 \ y" Z! `CDs could have different ratings, AAA -> F,
0 R* K; ?, _5 c7 U, I) z G# V# gmore risky ones would have higher premium (interest rate) as a compensation for an investment., U! [1 [+ t9 ]- g2 W1 c& V. c3 E
main reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
/ j( D6 K6 M: y7 ?in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities., }; K: B0 i2 I5 V6 R6 Z! ~- g
Also, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.8 b8 ]" ` y; V% S! h* Q
similar to bonds, CDs trading in the secondary market have different value at different times,
! f; d9 i6 R; n2 C7 b6 Z0 Z3 znormally the value is calculated by adding it's principle and interest. # V8 g$ e8 {0 ?1 z% q E
eg. the value of the mortgage+the interests to be recieved in the future. , H2 |0 l6 n5 u* R; {; h, Y
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.
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; \% D& n( _9 u) d- X5 @9 [# U6 T2 Eim not quite sure if the multiplier effect does really matter in this case.
: w- x$ j% Y5 l* }+ A" B+ S( xin stock market, it's the demand and supply pushing the price up/downwards.4 R) p3 p) s' R. `% X3 u
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,
' f/ ^: t- A( @; zA's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.: {& ]6 G2 r* A! O
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.
7 e3 S4 E' ?" t a# E) S6 Ubut the value of their assets did really drop significantly.
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5 `5 W0 I; y$ v; E1 t+ _[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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