The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?
Author
Summary, in English
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.
Department/s
Publishing year
2008
Language
English
Pages
2109-2126
Publication/Series
World Development
Volume
36
Issue
11
Document type
Journal article
Publisher
Elsevier
Topic
- Economics
Keywords
- commercial microfinance
- structured finance
- collateralized debt
- MiCDO
- obligation
- Asia
- China
Status
Published
ISBN/ISSN/Other
- ISSN: 1873-5991