The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?
Summary The aim of this paper is to highlight a potentially very fruitful link between micro-entrepreneurs and international capital markets. It discusses the role structured finance and credit derivatives could play in extending finance to micro-entrepreneurs on a much larger scale than today's mainly non-commercial microfinance industry. The mechanisms of so-called collateralized debt obligations (CDOs) are described and extended to the microfinance world. Finally, a hypothetical, but realistic, example of such a microfinance CDO (MiCDO) is used to discuss the implications of securitization and tranching of microcredits.
Year of publication: |
2008
|
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Authors: | Byström, Hans N.E. |
Published in: |
World Development. - Elsevier, ISSN 0305-750X. - Vol. 36.2008, 11, p. 2109-2126
|
Publisher: |
Elsevier |
Keywords: | commercial microfinance structured finance collateralized debt obligation MiCDO Asia China |
Saved in:
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