First Capital Holdings Corp. Harvard Case Solution & Analysis

First Capital Holdings Corp. Case Solution

The supervisor of a money management firm considers whether to put money into the securities of a big, financially distressed, California-based life insurance holding company that holds 40% of its assets in high-yield junk bonds. In the last year, the value of its portfolio has decreased substantially, and it's seeking a substantial infusion of capital from its biggest (28%) investor--a New York-based investment bank--that's experiencing fiscal problems of its own. Within the last month, another big California-based insurance company that also invested greatly in junk bonds was confiscated by regulators following a "run on the bank" by worried policyholders, and the State Insurance Commissioner has openly declared his intent to "crack down" on abuses in the insurance industry.

This is just an excerpt. This case is about  FINANCE & ACCOUNTING

PUBLICATION DATE: May 17, 1996

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