Publications
Publications
- February 1994
- HBS Case Collection
Fremont Financial Corporation
Abstract
Fremont Financial is an asset-based lender to middle-market companies. The firm has three options to raise capital to finance its loan portfolio. Fremont can (1) extend its existing bank line of credit, (2) issue commercial paper through a special purpose-conduit, or (3) securitize and sell the loan portfolio into the capital markets. The case emphasizes the problems and potential solutions to asymmetric information and moral hazard problems that are endemic to financial intermediation.
Keywords
Citation
Sirri, Erik R., and Ann Zeitung. "Fremont Financial Corporation." Harvard Business School Case 294-054, February 1994.