Independent Research and Policy Advocacy

Multi originator securitisation (MOSEC) in microfinance

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Structured finance approach has provided microfinance institutions (MFIs) the access to diverse funding sources. During last fiscal year 2011-12, MFIs raised more than INR 20 billion through securitisation transactions. However around 85% of the funds raised were accounted by large MFIs who were capable of providing the critical sized unencumbered microloan portfolios which could be placed in the market. Smaller MFIs often find it difficult to provide a sufficiently large portfolio for a single originator securitisation transaction. The IFMR Capital’s multi-originator securitisation (MOSECTM) allows small and medium sized MFIs to combine their microloan portfolios in a single pool to achieve the required critical size.

Vaibhav Anand and Kshama Fernandes of IFMR Capital have recently authored an article “Multi-originator Securitisation (MOSECTM) in Microfinance” that was published in the Securitisation & Structured Finance Handbook 2012/13 by Euromoney Yearbooks (London), where they explain the MOSECTM structure and its benefits in detail.

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