Hot Money - Types of Hot Money

Types of Hot Money

As mentioned above, capital in the following form could be considered hot money:

  • Short-term foreign portfolio investments, including investments in equities, bonds and financial derivatives
  • Short-term foreign bank loans
  • Foreign bank loans with short term investment horizon

The types of capital in the above categories share common characteristics: investment horizon is short; they can come in quickly and leave quickly.

Read more about this topic:  Hot Money

Famous quotes containing the words types of, types, hot and/or money:

    Science is intimately integrated with the whole social structure and cultural tradition. They mutually support one other—only in certain types of society can science flourish, and conversely without a continuous and healthy development and application of science such a society cannot function properly.
    Talcott Parsons (1902–1979)

    As for types like my own, obscurely motivated by the conviction that our existence was worthless if we didn’t make a turning point of it, we were assigned to the humanities, to poetry, philosophy, painting—the nursery games of humankind, which had to be left behind when the age of science began. The humanities would be called upon to choose a wallpaper for the crypt, as the end drew near.
    Saul Bellow (b. 1915)

    There is little for the great part of the history of the world except the bitter tears of pity and the hot tears of wrath.
    Woodrow Wilson (1856–1924)

    There are hardly half a dozen writers in England today who have not sold out to the enemy. Even when their good work has been a success, Mammon grips them and whispers: “More money for more work.”
    Aleister Crowley (1875–1947)