These problems can be overcome, or mitigated, by using suitable operators and techniques to diversify the idiosyncratic risks of debt instruments issued by small and medium-sized enterprises. In Italy emerging credit market tensions have led to the launch, in recent months, of several initiatives for investing in bonds, financial paper and loans of unlisted companies, most of them based on the closed-end fund.
In general, these credit funds envisage a careful assessment of the issuers and active management of the portfolio over a medium-to-long horizon. The experience of other countries bears out the enormous potential of such funds.12 Securitization is another means of aggregating loans to small firms, helping to facilitate their indirect access to the markets.