Micro-banks Sought to Participate in Pilot Study to Foster Securitization of Microloan Portfolios

The Center for the Development of Social Finance (CDSF) is launching a project for the development of securitization style static pool analysis to the portfolio of Microfinance Institutions (MFIs). This project has received funding support from the Omidyar Network and Taylor Jordan Donor Advised Fund of the RSF Global Community Fund.

Static pool analysis involves the performance tracking of a pool of investments with similar risk-return profiles, typically loans that have similar vintages and underwriting criteria. Thus static pool analysis shows a financial institution’s true return on a pool by keeping it static. This allows the disaggregation of the overall loan portfolio into loan pools whose returns can be more accurately predicted and priced.

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