The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?

Research output: Contribution to journalArticle


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.


Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics


  • commercial microfinance, structured finance, collateralized debt, MiCDO, obligation, Asia, China
Original languageEnglish
Pages (from-to)2109-2126
JournalWorld Development
Issue number11
Publication statusPublished - 2008
Publication categoryResearch