The Role of International Capital Markets in Microfinance
Microfinance: Emerging Trends and Challenges, Sundaresan, Suresh (ed.), Edward Elgar Publishing Limited, 2008
16 Pages Posted: 4 Nov 2019
Date Written: Jan 1, 2008
Abstract
Commercial investors awoke to the attractive risk-return profile of microfinance in the early 2000s. This paper describes the introduction of capital markets into the microfinance industry with reference to distinct financial products, and with a specific focus on the first commercial collateralized debt obligation, a transaction on which the author was integrally involved. It discusses whether microfinance can develop into a true "asset class" and highlights potential pitfalls as the industry penetrates a commercial investor base.
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