The U.S. Subprime Crisis:
Lessons & Implications for the Microfinance Industry
Our next SVMN meeting will be on Monday, May 19th and will feature Katherine McKee of CGAP and Steve Hardgrave of Gray Ghost Ventures. Join us to discuss what consequences the sub-prime crisis might have for microfinance in developing countries, and what lessons our field can draw from its underlying cause.
Katherine McKee, Senior Advisor at CGAP
Steve Hardgrave, Partner at Gray Ghost Ventures
Less than two years ago, problems started to emerge in the U.S. sub-prime market. What began as a niche problem has now spread in dramatic fashion. With an estimated two million sub-prime loans likely to default, and housing values plummeting in many markets, the crisis is setting off worldwide concerns about how the resulting credit crunch, and possible U.S. recession, will affect growth in rich and poor countries.
Professor Yunus has suggested that microfinance is the “sub-sub-subprime” market, and the securitization of microfinance debt has helped draw investment capital to the sector. In light of this, join us to discuss what consequences the sub-prime crisis might have for microfinance in developing countries, and what lessons our field can draw from its underlying cause. We will be considering the impact both on short-term financing needs, and on the longer-term viability of new products, practices, risk management techniques, and financing strategies.
To register, please click on the SVMN registration link here:
(more info below)
When: Monday, May 19, 2008
6:00-6:30pm: Registration, Dinner & Networking
6:30-8:00pm: Speaker & Discussion
8:00-8:30pm: Networking & Wrapup
Where: auditorium on first floor below Omidyar Network offices
Redwood City, CA 94063
in advance: $20 regular attendee | $10 students & non-profits (w/ ID)
at the door: $25 regular attendee | $15 students & non-profits (w/ ID)
(includes dinner + drinks; there is no “non-dinner” option… so eat up!)
Kate joined CGAP (the microfinance consortium) in September 2006 as Senior Advisor for Policy, Outreach and Aid Effectiveness. From 1998 she was appointed Director of the Microenterprise Development office at the United States Agency for International Development (USAID), leading support to USAID overseas programs that invest over $200 million annually in microfinance and microenterprise initiatives in 70+ countries worldwide. From 1986-98 Kate was a senior manager with Self‑Help in North Carolina, the largest nonprofit Community Development Financial Institution (CDFI) in the US. From 1994-95 she helped set up the federal CDFI Fund, to invest in CDFIs and provide incentives for mainstream financial institutions to boost community development lending. From 1978-86, she developed and led international and domestic enterprise, finance, rural development and women’s programs for the Ford Foundation in its headquarters and West Africa office in Lagos. Kate is a development economist, with a Masters in Public and International Affairs from the Woodrow Wilson School of Princeton University.
Steve is a Partner at Gray Ghost Ventures, where he is leading a new initiative to connect affordable private schools in low-income emerging market communities with capital markets. He recently helped start the International Association of Microfinance Investors (IAMFI) and prior to joining GGV, Steve held roles managing investments at Omidyar Network, researching markets for HP’s Emerging Market Solutions group and founding a microfinance institution in Mexico.