Publications
Publications
- March 1994
- HBS Case Collection
Fremont Financial Corporation (A)
Abstract
Fremont Financial is an asset-based lender to middle-market companies. This case considers two options for Fremont to raise capital to finance its loan portfolio. Fremont can: 1) extend its existing bank line of credit, or 2) issue commercial paper through a special purpose conduit. The case emphasizes comprehension of Fremont's business as a non-bank lender and the manner by which these two financing choices address asymmetric information and moral hazard problems endemic to financial intermediation.
Keywords
Citation
Sirri, Erik R., and Ann Zeitung. "Fremont Financial Corporation (A)." Harvard Business School Case 294-098, March 1994.