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, it hypothetical, but realistic, example of such a microfinance CDO (MiCDO) is used to discuss the implications of securitization and tranching of microcredits. (C) 2008 Elsevier Ltd. All rights reserved.
| Original language | English |
|---|---|
| Pages (from-to) | 2109-2126 |
| Journal | World Development |
| Volume | 36 |
| Issue number | 11 |
| DOIs | |
| Publication status | Published - 2008 |
Subject classification (UKÄ)
- Economics
Free keywords
- commercial microfinance
- structured finance
- collateralized debt
- MiCDO
- obligation
- Asia
- China
