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The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?

Byström, Hans LU (2008) In World Development 36(11). p.2109-2126
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.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
commercial microfinance, structured finance, collateralized debt, MiCDO, obligation, Asia, China
in
World Development
volume
36
issue
11
pages
2109 - 2126
publisher
Elsevier
external identifiers
  • wos:000261117100001
  • scopus:53849084794
ISSN
1873-5991
DOI
10.1016/j.worlddev.2007.11.012
language
English
LU publication?
yes
id
a4d90b97-a155-4e58-9e2e-8006faf1f6f9 (old id 1305807)
date added to LUP
2009-03-20 11:18:05
date last changed
2017-09-10 03:35:19
@article{a4d90b97-a155-4e58-9e2e-8006faf1f6f9,
  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.},
  author       = {Byström, Hans},
  issn         = {1873-5991},
  keyword      = {commercial microfinance,structured finance,collateralized debt,MiCDO,obligation,Asia,China},
  language     = {eng},
  number       = {11},
  pages        = {2109--2126},
  publisher    = {Elsevier},
  series       = {World Development},
  title        = {The Microfinance Collateralized Debt Obligation: A Modern Robin Hood?},
  url          = {http://dx.doi.org/10.1016/j.worlddev.2007.11.012},
  volume       = {36},
  year         = {2008},
}