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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.
! \( f1 N( b3 LCDs could have different ratings, AAA -> F, p" B2 n2 w( w3 }& v
more risky ones would have higher premium (interest rate) as a compensation for an investment.
l: f2 W& z# k) Imain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,$ s* |; K! B7 @3 x, L0 p; O
in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
: k6 A/ R7 ? g: `4 V5 b. PAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.9 M" x1 f6 r! ^2 K& [# O2 L8 O; ^8 C
similar to bonds, CDs trading in the secondary market have different value at different times,
, P5 ~7 w- c' P% q6 o, t0 `3 _normally the value is calculated by adding it's principle and interest.
' G' w! ]* T$ _& G& Yeg. the value of the mortgage+the interests to be recieved in the future. / T. U. ~! M7 @3 f% O
banks who sell the CDs, could enjoy a few benefits like, the present value of cash and passing the risk of holding a debt to another party.
, o7 s# m6 W3 b% @( G: c7 Z; x/ w% A ], E5 s3 ^ j
im not quite sure if the multiplier effect does really matter in this case.
* \) q2 {0 q6 Z8 U# S+ v: m+ ?: S/ d4 Gin stock market, it's the demand and supply pushing the price up/downwards./ R) ?3 O. s# A+ p4 X0 z
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,7 \* L9 [' x/ }9 o/ w
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
: Y! F0 {+ W+ \5 Z e% 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.
& Y3 j' X7 n* r" S9 \# Tbut the value of their assets did really drop significantly.1 ? c$ H2 S" N1 F/ |
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[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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