The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?

  • H. N. E. Bystrm (2008). World Development, 2109-2126
  • Abstract: 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. 2008 Elsevier Ltd. All rights reserved.
  • Theme: Finance
  • Keywords: Asia, China, collateralized debt obligation, commercial microfinance, MiCDO, structured finance, capital market, debt, entrepreneur, financial system, microfinance, Eurasia, Far East
  • Reference type: Journal Article
  • Geographic location: International
  • Quality:
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