The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?

Hans Byström

World Development, 2008, vol. 36, issue 11, 2109-2126

Abstract: Summary 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.

Keywords: commercial; microfinance; structured; finance; collateralized; debt; obligation; MiCDO; Asia; China (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (9)

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Working Paper: The Microfinance Collateralized Debt Obligation: a Modern Robin Hood? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:36:y:2008:i:11:p:2109-2126

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