Investors are increasingly able to put their money to work creating social as well as financial returns, thanks in part to the expanding role of investment banks in globalizing the funding of microfinance institutions (MFIs). On March 1 Swiss microfinance specialists BlueOrchard announced the launch of a collateralized loan obligation led by Morgan Stanley called BlueOrchard Loans for Development (Bold) that it describes as a landmark transaction: the securitization of loans to a diverse portfolio of microfinance institutions in 13 countries.
The cash raised in the issue will ultimately be loaned in amounts as small as $50 to micro...
