Case | HBS Case Collection | October 1998 (Revised May 1999)

Commercial Financial Services, Inc.: Securitization of Charged-off Credit Card Receivables

by Kenneth A. Froot and Ivan G. Farman

Abstract

Commercial Financial Services (CFS) is a company that buys charged-off credit card receivables, securitizes them, and then attempts to collect on the receivables. The case deals with how the firm makes money and the limits of securitization as an efficient financing strategy.

Keywords: financing; asset-back finance; financial policy; securitization; Credit; Financial Strategy; Business Strategy; Policy; Financial Services Industry;

Citation:

Froot, Kenneth A., and Ivan G. Farman. "Commercial Financial Services, Inc.: Securitization of Charged-off Credit Card Receivables." Harvard Business School Case 299-023, October 1998. (Revised May 1999.)