Publications
Publications
- March 1994
- HBS Case Collection
Fremont Financial Corporation (B)
Abstract
Fremont has a third option to finance its loan portfolio, which involves securitizing and selling the small-business loans into the capital markets. Emphasizes asymmetric information and moral hazard problems involved in designing an asset securitization. When used in conjunction with the (A) case, the sequence highlights the relative strengths and weaknesses of institutions and markets in providing solutions to funding problems.
Keywords
Citation
Sirri, Erik R., and Ann Zeitung. "Fremont Financial Corporation (B)." Harvard Business School Case 294-099, March 1994.