Microfinance Insights suggests that securitization might help MFIs overcome capital constraints. But MFIs – or at least the good ones – don’t lack for funds. Securitization for MFIs is a dangerous solution, and seems to be mostly a solution looking for a problem.
The NYTimes finds a clear link between subprime lending and race inequality in America, suggesting even in developing countries the availability of credit, by itself, is no solution to poverty.