One of the mysteries of the English language finally explained.
Capital which is frequently transferred between financial institutions in an attempt to maximize interest or capital gain.
- ‘Dunn avoids discussing capital controls but does urge nations to reduce their dependence on short-term debt, so-called hot money.’
- ‘This money, however, is hot money and can leave the country at any time.’
- ‘However, in practice, as you have said, the money tends to be hot money, to move in and out quite rapidly.’
- ‘Such ghost companies, with no secretary, no phone line, no fax, just a brass plate on the front door, have until now been largely sufficient to hide hot money from the Irish tax investigator.’
- ‘At the same time, the spread of financial liberalization has exposed developing nations to the promise and perils of export strategies financed by hot money.’
- ‘This editor firmly believes that exchange controls of some kind are often if not always useful for preventing hot money from destabilizing international financial markets.’
- ‘Perhaps a better remedy is for emerging markets to just avoid hot money if their financial systems can't handle it.’
- ‘Brokerages benefit when hot money fuels the stock markets.’
- ‘Investors purchase shares on foreign stock markets or hold currency deposits at foreign banks, transferring large sums of hot money across frontiers as investor confidence or interest rates rise and fall.’
- ‘Another approach is to look for fund families that close funds to new investors when performance surges, lest a wave of hot money overwhelms the fund's manager and dilutes returns.’
hot money/hät ˈmənē/
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