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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.
7 L S2 v% O! G: ICDs could have different ratings, AAA -> F,
]8 {/ z/ c6 W. d+ |* gmore risky ones would have higher premium (interest rate) as a compensation for an investment.8 a9 O7 c! ~6 K; {
main reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
# h( b3 L7 D7 b4 L+ Din other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
' {4 o' B9 ^ Y) Z0 D# \Also, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.0 K3 {0 p/ q3 H6 w2 Q! @2 u
similar to bonds, CDs trading in the secondary market have different value at different times,# _/ e, J, V) G0 I3 J
normally the value is calculated by adding it's principle and interest.
[: B' o# Z4 ~8 w* G! teg. the value of the mortgage+the interests to be recieved in the future.
0 K+ K/ \" r+ F0 {% A3 Wbanks 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.1 H0 s! ?3 F( n4 ?3 Y" f! |
5 K6 @% A0 f5 j
im not quite sure if the multiplier effect does really matter in this case.+ i P. s/ F: `
in stock market, it's the demand and supply pushing the price up/downwards.9 k* u6 H' y; J2 Q7 G% S
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,5 |8 t1 E: U( h9 j& X+ H+ Y
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
! m! P5 L+ ^ s* VThe 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 C* f( m6 j1 @5 a, \% l2 E: _) }but the value of their assets did really drop significantly.& l6 o& h) H6 h) v
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[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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