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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.3 M- P7 h g" T+ m* ?
CDs could have different ratings, AAA -> F,6 b( K; B; L7 v- D. J$ m1 j3 a
more risky ones would have higher premium (interest rate) as a compensation for an investment.
% ~3 o0 h& p* x0 h; W% Jmain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
9 J8 S, V" @% j- g* e/ D$ Kin other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
3 {% Q" S" j% v$ Y# l; [Also, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.9 H( X0 |& @( e N6 X
similar to bonds, CDs trading in the secondary market have different value at different times,7 e% m! R- o% k5 z
normally the value is calculated by adding it's principle and interest.
6 G4 V) B* G7 c, z0 ^eg. the value of the mortgage+the interests to be recieved in the future.
2 U9 N. h6 H! Qbanks 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.
3 z! q9 N& ?; {+ [
: F- O8 h. H! i! L/ y" xim not quite sure if the multiplier effect does really matter in this case.
) m, T. {! t1 u6 I$ sin stock market, it's the demand and supply pushing the price up/downwards.( d4 N/ P' R$ w9 A' D8 ]& W
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,/ |2 }0 r' h! L: p9 f5 R9 g! O
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.* H( Q+ y7 J }. g- A- R, j6 V
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.
) c: o1 r; b7 abut the value of their assets did really drop significantly.
, X& o) N6 e: T# g2 x0 o% ]
$ t0 [: n& c7 O. X; W! _0 V; m[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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