Dash, Debasis Kumar (2010): Capital Markets- Utility for Micro-finance.
Download (381Kb) | Preview
The Paper deals with the situation for efficient use of Capital Markets for financing Micro-finance Institutions. In order to sustain the growth in the microfinance industry, it is necessary to shifting the loan financing for MFIs from traditional lenders to capital markets. This can primarily be achieved through securitization and CDOs. Both have different advantages to offer which can be tapped separately and also customized on a case‐by‐case basis. Apart from the domestic commercial investors, foreign market debt can also be tapped for the funding needs of the MFIs but for that to function properly, the FXR has to be managed which can be effectively done through the creation of a “global local currency fund” which basically works on the principle of diversification.
|Item Type:||MPRA Paper|
|Original Title:||Capital Markets- Utility for Micro-finance|
|Keywords:||Micro-Finance, Capital Markets, Securitization, Tranching|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages|
|Depositing User:||Debasis Kumar Dash|
|Date Deposited:||15. Dec 2010 06:42|
|Last Modified:||12. Feb 2013 13:16|
1. Jerome Booth: "The Attraction of Local Currency Emerging Debt." The Emerging View, February 2005.
2. Peter Crabb: "Foreign Exchange Risk Management Practices of Microfinance Institutions." Journal of Microfinance, winter 2004.
3. Randall Dodd and Shari Spiegel: "Up From Sin: A Portfolio Approach to Financial Salvation." Financial Policy Forum ‐ Derivatives Study Center, August 2004.
4. DIECKMANN, R. (2007) Microfinance: An Emerging Investment Opportunity, Frankfurt: Deutsche Bank
5. STIEBER, S. (2007) ‘Is Securitization Right for Microfinance?’ MIT Press Journals: Innovations, Technology, Governance, Globalization
6. Global Structured Finance Research, J.P. Morgan Securities Inc., New York ‐ weekly publications between Sep 2004 and Apr 2005