Microfinance, a source of small-scale lending to entrepreneurs and savers in developing countries, is emerging as a debt asset class for large western institutional investors looking to diversify from traditional credit, according to analysis from Deutsche Bank, which predicts investment in the sector will rise 10-fold to $20bn (€13.9bn) by 2015.

The report said that increased interest in socially responsible investment would also encourage the trend, but stressed microfinance does offer attractive returns.