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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.
! I5 H: w' i. d5 U$ \CDs could have different ratings, AAA -> F,; C, f) T9 w7 V% e5 G6 }
more risky ones would have higher premium (interest rate) as a compensation for an investment.$ j1 \6 p$ y' p+ a* |
main reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
6 l S3 c+ z6 d) O, z2 H4 Lin other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
k. l* P7 [2 y3 c0 d+ LAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.- A/ `0 j% K4 m
similar to bonds, CDs trading in the secondary market have different value at different times,. }7 X! Q R. W6 `8 d' J! g( D3 R
normally the value is calculated by adding it's principle and interest.
- I- c# b+ m4 `5 b" Y! weg. the value of the mortgage+the interests to be recieved in the future.
p4 w6 d' `1 F8 ^8 {+ @/ d" _0 ?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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# i4 z0 P) B/ u2 J0 _im not quite sure if the multiplier effect does really matter in this case.+ C4 f$ Q/ G. R1 c$ B4 I4 j
in stock market, it's the demand and supply pushing the price up/downwards.
6 X% r& D9 o: L' ~) h1 l9 A( HFor eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,
# W3 p$ z# X/ Y; ^1 GA's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.* m8 O5 O; S* }7 J" a
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. 1 f. ~; w2 [8 u$ t/ Z) p' k5 x& Z
but the value of their assets did really drop significantly.9 d: I) @! `6 N) N+ p V
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[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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