The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?

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.

• Författare: Hans Byström
• Avdelning/ar: Nationalekonomiska institutionen
• Publiceringsår: 2008
• Språk: Engelska
• Sidor: 2109-2126
• Publikation/Tidskrift/Serie: World Development
• Volym: 36
• Avvikelse: 11
• Länkar: http://dx.doi.org/10.1016/j.worlddev.2007.11.012
• Dokumenttyp: Artikel i tidskrift
• Förlag: Elsevier
• Ämne: Economics
• Nyckelord: commercial microfinance; structured finance; collateralized debt; MiCDO; obligation; Asia; China
• Aktiv: Published
• ISBN/ISSN/Övrigt: ISSN: 1873-5991