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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.# W, H. b( E+ ~& U) X
CDs could have different ratings, AAA -> F,+ v2 W5 X6 O& Q8 T$ }
more risky ones would have higher premium (interest rate) as a compensation for an investment.
X: A; V+ F Jmain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,9 ?1 f% Y% a, M/ d7 D" O
in other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
0 k* g2 F+ ~" nAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.
- s! M; {8 m9 L6 Y7 H9 C2 Gsimilar to bonds, CDs trading in the secondary market have different value at different times,$ i) ~2 V2 M u$ K7 B( z3 g& D
normally the value is calculated by adding it's principle and interest.
& C3 y/ h$ s. \# neg. the value of the mortgage+the interests to be recieved in the future. . {# P9 W1 h2 k6 i5 y
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.
* @- Q6 ]( U) Q
' k3 O2 Y& A9 gim not quite sure if the multiplier effect does really matter in this case.
6 E+ Q1 e9 C2 B/ rin stock market, it's the demand and supply pushing the price up/downwards./ A. A. J9 J: L2 N# ^' q u3 _
For eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,
: Y8 y: s4 R, V: w, _A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.
! K5 ~: _' w) p: X L; ~3 w+ _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.
2 S. G- q Y5 `6 }but the value of their assets did really drop significantly.
* p/ g- t7 q1 d) J# y- _
0 {( }: f6 o! L4 _0 {[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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