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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.8 `/ l% L i& v, C
CDs could have different ratings, AAA -> F,
8 F' C! E( l2 emore risky ones would have higher premium (interest rate) as a compensation for an investment.
1 a* i/ x9 q# H# A. i$ X6 Z8 \; fmain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,8 d5 ~* ]2 H- V8 X* }
in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
% g5 [ |% v: T# ?3 ?Also, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.
5 P7 l* {( X8 J+ V; G8 Vsimilar to bonds, CDs trading in the secondary market have different value at different times,( @, o8 z# @! b2 X+ T3 v
normally the value is calculated by adding it's principle and interest. + K6 P- P, k0 g# f5 J3 Y7 ]
eg. the value of the mortgage+the interests to be recieved in the future. ) z% @6 | M0 W/ e
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.2 k) j# k5 _ o
! T1 @/ D+ g" r. _im not quite sure if the multiplier effect does really matter in this case.
7 |5 a( G F+ l1 E# E8 lin stock market, it's the demand and supply pushing the price up/downwards.
% u. u$ U+ q2 h o7 N. dFor eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,, p5 R0 Q7 o d x
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
; \0 }) f- [3 u, e3 {4 zThe 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 }6 u- ?4 S$ v, ^
but the value of their assets did really drop significantly.
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2 I4 o. Y* A0 Q" h7 B# W! B/ Y[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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