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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., d: z- a2 M' w! H+ d
CDs could have different ratings, AAA -> F,
: B" E4 {9 h# Y% Xmore risky ones would have higher premium (interest rate) as a compensation for an investment.
5 W: V K# H8 Ymain reason why ppl buy those risky CDs is because the rate of return exceeds their internal rate of return,
9 R1 j7 T; d* u4 Gin other words, the interest rate of that investment > their required interest rate, therefore they invest in those securities.
- d) X: v. Z; m, E; v( K9 t+ yAlso, fund managers would include risky assets in their portfolio for different purposes, eg efficiency.( }, M9 t6 Y3 P% j+ ^
similar to bonds, CDs trading in the secondary market have different value at different times,/ g9 X7 }4 ?+ ]$ o
normally the value is calculated by adding it's principle and interest.
; `4 I8 C4 f# teg. the value of the mortgage+the interests to be recieved in the future. / {9 I: I! B, ?4 t
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.% S) ^! P ~& v- g8 E' W
1 n" k# ]+ ]2 m& tim not quite sure if the multiplier effect does really matter in this case.0 k0 d) a' c6 r2 @9 P8 q# T
in stock market, it's the demand and supply pushing the price up/downwards.
% D* D5 A% v: x; H+ LFor eg, A bought 10000 shares @10$ ; B sells 20000 shares to C @ $12,! U: U% U" `/ p. o' u; }
A's shares would suddenly increase to $120000 from $100000 which does not invlove any $ transaction.* O9 F; p, b. d* f& ?' `# U0 {. l
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.
, h8 g! w R' z/ X* `7 ubut the value of their assets did really drop significantly. `3 e3 [ w& x2 l' D+ B
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[ 本帖最後由 Kev 於 2008-10-8 07:26 PM 編輯 ] |
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